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Why are women paid less?

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I guess it is something that everyone knows happens, but no one wants to admit: women are being paid less than men. I suppose that I always knew this was the case, but I never really thought about just how vast the difference in the average salaries was until I read a study today on the male-female pay gap.

According to research released by the American Association of University Women Educational Foundation, the pay gap starts from day 1 out of college and increases through a woman's career. The study showed that women earn roughly 80% of what their male counterparts get in their first year out of college. If this sounds a bit disturbing consider that these same women can look forward to earning approximately 69% as much as men 10 years down the road.

But why is this the case?

Are more women heading into "lower paid" fields of work? The answer to that question is yes, the study shows that women do gravitate toward lower-paying fields, but this is not the simple answer to the question. The research took this into consideration and examined men and women in the same fields of work. When men and women are considered with similar employment a pay difference is still there. Women in education earn 95% what men earn, and females working in the math field can expect to bring home roughly 76% of their male counterparts.

Could the pay gap straight out of school be due to women performing worse in their college education? Nope, this isn't the problem either according to the study. The research points out that female students tend to outperform men in college scores.

So I am left wondering, why exactly are men and women bringing home different sized paychecks? What are your thoughts on this subject?


Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.

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Last updated: July 06, 2009: 07:33 AM

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