February 18, 2010

The research firm Catalyst conducted a survey of alumni who graduated from MBA programs between 1996 and 2007. They looked at 26 leading business schools in Asia, Canada, Europe, and the United States. The participants graduated from full-time MBA programs and are currently working full-time in companies or firms. They found that men were more likely to start their first post-MBA job in higher positions than women -- even after taking into account the participants' number of years of experience, industry, and global region. It's also not a matter of different aspirations. The findings hold up even when considering only men and women who aspire to CEO/senior executive level positions. Some might say that women's careers stall because they take time out to have children. However, the study found that the results hold up even when considering only men and women who do not have children.

They also found that women's first post-MBA salary was lower than men's -- even after taking into account the number of years of experience, time since MBA, first post-MBA job level, global region, and industry. These salary differences are also not due to different aspirations or parenthood. On average, women are paid $4,600 less in their first job than men.

They also found that women lag behind men in career advancement. Even when taking into account first post-MBA job level (among the other factors I've already named that were controlled for), men were more likely to be at a higher position at the time of the survey than were women. Men were twice as likely as women to be at the CEO/senior executive level. Conversely, more than half of women were at the entry level or first manager levels, and were significantly more likely to be at those ranks than men. The study found no significant gender differences at mid-level jobs.

Furthermore, regardless of the starting level of their first post-MBA job and first post-MBA salary, men's salary growth outpaced women's. Even among those aspiring for CEO/senior level positions and do not have any children, men's salary outpaced women's. Men also significantly outpaced women in moving up "the corporate ladder" -- even if they both started their first post-MBA job at entry level or one level higher, had the same number of years of experience, and received their MBA in the same year. Only when they both started their first post-MBA jobs at the mid-level or senior executive level (though it's harder for women than men to get a senior rank job as their first job) there was no significant difference in the rate of career advancement. However, men still outpaced women in compensation growth amongst those who start at any level other than the CEO/senior executive rank.

On average, men were also more satisfied with their career overall than women -- except at entry level jobs, where there was no difference in career satisfaction. Thirty-seven percent of men reported that they were very satisfied with their overall career advancement compared to 30% of women.

The report concluded, "For the past two decades leaders have counted on parity in education, women's accelerated movement into the labor force, and company-implemented diversity and inclusion programs to yield a robust talent pipeline where women are poised to make rapid gains to the top. But results of this study show that these hopes were ill-founded -- when it comes to top talent, women lag in advancement, compensation, and career satisfaction. The pipeline is not healthy; inequality remains entrenched. " (Full Story) (Full Story)