Gender wage gap decreases by 43% in Greater Boston, but it’s complicated – Boston.com

Report on Wage Gaps in Greater Boston: Progress and Challenges in Achieving Sustainable Development Goals

Introduction

The Boston Women’s Workforce Council (BWWC) released a report highlighting significant changes in wage disparities in Greater Boston for the year 2025. This report emphasizes the progress made in closing the gender wage gap while drawing attention to the widening racial wage gap. These findings are critical in the context of the United Nations Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities).

Key Findings on Wage Gaps

1. Gender Wage Gap Reduction
   • The gender wage gap decreased by 43%, from 21 cents in 2023 to 12 cents in 2025.
   • This reduction occurred despite women’s salaries remaining largely unchanged; men’s salaries decreased during this period.
   • Advancement of women into C-suite and senior executive roles contributed to narrowing the gap.
   • However, when including performance-based pay (bonuses, commissions, profit-sharing, merit raises), the gender wage gap widens to 18 cents, with men earning more than twice as much as women in performance pay.
2. Widening Racial Wage Gap
   • The racial wage gap increased from 27 cents in 2023 to 31 cents in 2025.
   • Racial and ethnic minorities remain overrepresented in low-paying jobs, while white employees dominate managerial and executive positions.
   • When factoring in performance pay, white employees earn twice as much as employees of color on average.
   • In executive roles, employees of color earn an average of $180,440 compared to $336,708 earned by white employees.
   • Black men earn less than women of any racial group and significantly less than white men.

Implications for Sustainable Development Goals

The report’s findings relate directly to several SDGs, underscoring both progress and ongoing challenges:

• SDG 5: Gender Equality
  • Progress in reducing the gender wage gap and increasing women’s representation in leadership aligns with targets to achieve gender equality and empower all women and girls.
  • Persistent disparities in performance pay highlight the need for continued efforts to ensure equal pay for equal work.
• SDG 10: Reduced Inequalities
  • The widening racial wage gap signals a setback in reducing inequalities within and among countries.
  • Addressing the overrepresentation of racial minorities in low-paying jobs and underrepresentation in leadership is essential to meet SDG 10 targets.
• SDG 8: Decent Work and Economic Growth
  • Closing wage gaps contributes to promoting sustained, inclusive economic growth and productive employment for all.

Statements from Leadership

• Kim Borman, Executive Director of BWWC
  • Expressed encouragement over the closing gender wage gap and increased women’s leadership.
  • Highlighted the urgent need to address the widening racial wage gap and persistent disparities in compensation.
  • Emphasized that closing wage gaps is not only ethical but also a competitive advantage for Boston’s talent retention and attraction.
• Mayor Michelle Wu
  • Acknowledged the complexity of closing wage gaps, requiring policy and cultural changes.
  • Recognized both the progress made and the significant work still needed to achieve equity.

Methodology

The BWWC report is based on employer payroll statements from industries with five or more companies. Wage gaps were calculated by dividing the average compensation of the group of interest by the average compensation of the comparison group.

Conclusion

The report underscores the importance of sustained efforts to achieve the Sustainable Development Goals related to gender equality and reduced inequalities. While progress in closing the gender wage gap is notable, the widening racial wage gap presents a critical challenge. Addressing these disparities is essential for fostering inclusive economic growth and ensuring equitable opportunities for all employees in Greater Boston.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 5: Gender Equality
   • The article discusses the gender wage gap and women’s representation in executive leadership, directly relating to gender equality in the workplace.
2. SDG 8: Decent Work and Economic Growth
   • The focus on wage gaps, fair compensation, and employment conditions connects to promoting sustained, inclusive economic growth and decent work for all.
3. SDG 10: Reduced Inequalities
   • The widening racial wage gap and disparities in pay between employees of color and white employees highlight issues of inequality and social inclusion.

2. Specific Targets Under Those SDGs Identified

1. SDG 5: Gender Equality
   • Target 5.1: End all forms of discrimination against all women and girls everywhere.
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.
2. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all women and men, including equal pay for work of equal value.
   • Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor.
3. SDG 10: Reduced Inequalities
   • Target 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.

3. Indicators Mentioned or Implied to Measure Progress

1. Gender Wage Gap
   • Average difference in wages between men and women (e.g., 12 cents vs. 21 cents in 2023).
   • Representation of women in C-suite and senior executive positions (increase by 7% over two years).
   • Performance pay disparities (men earning more than twice as much as women in bonuses, commissions, etc.).
2. Racial Wage Gap
   • Difference in average wages between employees of color and white employees (e.g., 31 cents vs. 27 cents in 2023).
   • Comparison of earnings in executive positions between employees of color and white employees ($180,440 vs. $336,708).
   • Performance pay differences between white employees and employees of color (white employees earning two times more on average).
3. Employment Representation
   • Overrepresentation of racial and ethnic minorities in low-paying jobs versus white employees in managerial roles.

4. Table of SDGs, Targets, and Indicators

Source: boston.com