Even in high-paying fields, American women still earn less than their male counterparts. And in some cases, the pay gap between men and women is even more pronounced.
The compensation models in some high-paying professions may be to blame. Pay that’s based on negotiation, client networks and company share payouts means hundreds of thousands of dollars could separate men and women in these top-paying fields, says Ariane Hegewisch, research director at the Institute for Women’s Policy Research.
“It’s much more so in professional jobs than say, if you work as a cashier,” Hegewisch says. “You typically do not have to negotiate your salary [in a low-paying job]. But in professional work, there is an element of negotiation.”
Less bargaining power and fewer connections
Compensation in high-paying law firms relies heavily on origination, or “books of business,” according to the law study. Because many women have less access to these expensive clients, their overall compensation takes a massive hit.
But the problem doesn’t end with law firms.
“It’s a bigger issue than just the legal industry,” says Jeffrey Lowe, global practice leader of Major, Lindsey & Africa’s law firm practice and author of the study on law compensation. “It just seems like no matter what industry you look at, you have these kinds of [gender pay gap] issues.”
“In finance, women are essentially being as productive, but they’re not getting the payoff because they’re not getting onto the accounts or the clients that they’re needing to,” says Pamela Coukos, former senior adviser at the Department of Labor and CEO of Working Ideal, a company that provides consulting on inclusive workplaces.
A million-dollar difference
In the law survey, male partners reported earning $959,000 on average, compared to the $627,000 reported by women. Male compensation increased year after year, as they upped hourly rates and booked more clients. Meanwhile, female partners reported a decline in their overall compensation.
“For women, there are fewer women partners than male partners at these law firms, so fewer mentorship opportunities for people who are like them,” Lowe says. “Women will also tell you, notwithstanding the strides I think have been made in society, there is still a sense that the old boy’s club can still be hard to crack. If you’re not part of it, you’re missing out on the opportunity to inherit clients that a male partner might be able to.”
Source : CNN