Female business school graduates are still paid less

The unjustified gender pay gap between male and female business school graduates is approximately 11 % in the private sector and 4% in the public sector. In the private sector, this unjustified gap has not diminished since the 1990s.
The unjustified gender pay gap refers to pay differences between men and women when similar positions and individuals with similar skills and knowledge are compared.
In the private sector, average pay of female business school graduates is approximately 75% of that of male graduates. The most important explanatory factor is that men are, more often than women, positioned in more demanding and thus better paid jobs.

 

Men work in better paid jobs

The total gender pay gap in the private sector between male and female business school graduates is 25%. This severe pay gap is explained by the difficulty/required skills level of the job and its position in the organisation, weekly working hours, years of experience and absence, industry and location of work.

Men have managerial duties more often than women, work longer hours and accumulate more years of experience, work in better paid sectors – such as finance – enjoy more often performance-related pay which raises the pay level, and they work more often than women in the Greater Helsinki Region where pay level is higher than in other locations.

The unjustified gender pay gap between male and female business school graduates is approximately 11 % in the private sector and 4% in the public sector. In the private sector, this unexplainable gap has not diminished since the 1990s. The unjustified gender pay gap refers to pay differences between men and women when similar positions and individuals with similar skills and knowledge are compared.

Women should be encouraged to accept promotions and demand better pay


In order to change attitudes in working life, the contribution of men and women, team leaders and management is needed to reduce the gender pay gap. Changing attitudes is not enough, however, and women should also be encouraged to accept promotions and request salaries corresponding to their skills and knowledge.

Men and women behave differently in salary negotiations. Women often settle for lower pay and rarely bring up the question of pay rises in their organisations.

Women should have the courage to step into their zone of uncomfortability and take decisions which may contradict traditional choices. When a promotion is offered, accept it. Women should have more determination and risk-taking. Female business school students should choose more male-dominated majors along with more traditional ones. Professionals also need more equitable sharing of family responsibilities.