Report on the Early Career Gender Pay Gap and its Implications for Sustainable Development Goals

1.0 Introduction

A recent study by the National Association of Colleges and Employers (NACE) reveals a significant gender pay gap among recent bachelor’s degree recipients. This report analyzes these findings, highlighting the persistent challenges to achieving key Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

2.0 Primary Findings of the Early Career Talent Survey

The survey, which included 1,400 professionals who graduated between 2017 and 2023, identified a substantial disparity in earnings between genders. The key data points are as follows:

• Female graduates earn, on average, 18% less than their male counterparts with similar educational backgrounds.
• The survey sample consisted of approximately 900 women and 500 men.
• Despite the pay gap, overall career satisfaction levels were reported as similar between genders.

3.0 Occupational Segregation as a Barrier to SDG 5: Gender Equality

The primary driver of the pay disparity is identified as “occupational sex segregation,” a phenomenon where men and women are concentrated in different industries and job types. This segregation directly contravenes the principles of SDG 5, which calls for equal opportunities in economic life.

• Private Sector Employment: 75% of male respondents work in the private for-profit sector, compared to just over 50% of female respondents.
• Non-Profit Sector Employment: Conversely, 30% of women work for non-profit organizations, where compensation is typically lower, further contributing to the wage gap.

This division undermines Target 5.5 of the SDGs, which aims to ensure women’s full and effective participation and equal opportunities in economic life.

4.0 Economic Ramifications and Contradiction of SDG 8 and SDG 10

The wage gap has immediate and long-term economic consequences for women, impeding progress towards SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities).

1. Immediate Financial Strain: Women are more likely to hold student loans and report less confidence in their ability to repay them, a direct result of lower earnings. This challenges the goal of decent work for all.
2. Long-Term Economic Insecurity: The persistent pay gap reduces women’s lifetime contributions to Social Security and retirement savings, jeopardizing their economic security in later life.

These outcomes are in direct opposition to SDG Target 8.5, which advocates for equal pay for work of equal value, and SDG Target 10.2, which seeks to promote the economic inclusion of all.

5.0 Policy Recommendations for SDG Alignment

To address these disparities and advance the SDG agenda, the report suggests proactive measures focused on breaking down occupational segregation and promoting equal opportunity, in line with SDG 4 (Quality Education) and SDG 5.

• Promote Atypical Occupations: Efforts should be made to introduce both women and men to career paths not traditionally associated with their gender.
• Early STEM Exposure for Women: Encouraging girls and young women to explore Science, Technology, Engineering, and Mathematics (STEM) fields from an early age is critical for diversifying the talent pipeline into higher-paying industries.

Implementing these strategies is essential for ensuring that educational achievements translate into equitable economic outcomes, thereby fulfilling the promise of the Sustainable Development Goals.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 5: Gender Equality

This goal is central to the article, which focuses on the economic disparities between men and women. The core issue discussed is the gender pay gap, where “women who recently graduated from college are earning significantly less than their male counterparts.” The article also identifies “occupational sex segregation” as a primary cause, directly linking to the goal of achieving gender equality in the economic sphere.

SDG 8: Decent Work and Economic Growth

The article directly relates to this goal by discussing employment, earnings, and economic security. The finding that women “earn an average of 18% less than similarly-educated men” highlights a failure to achieve decent work with equal pay. The long-term consequences mentioned, such as lower contributions to Social Security and retirement funds, underscore the connection to sustainable economic growth and individual economic security.

SDG 10: Reduced Inequalities

This goal is addressed by the article’s focus on the income inequality between genders. The pay gap is presented as a significant disparity that creates financial challenges for women, such as being “less confident of their ability to repay” student loans. This economic inequality between men and women is a key theme of SDG 10.

SDG 4: Quality Education

Although the article focuses on post-graduation outcomes for “similarly-educated” individuals, it connects to SDG 4 through its proposed solutions. The recommendation for “Introducing women to STEM at an early age, getting that career exploration” points to the need for quality education that eliminates gender disparities in fields of study and provides women with skills for higher-paying, non-traditional roles.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 5: Gender Equality

   • Target 5.1: End all forms of discrimination against all women and girls everywhere. The gender pay gap described in the article is a form of economic discrimination against women.
   • 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. The concept of “occupational sex segregation” and the call to help women “explore nontraditional roles” directly relate to ensuring equal opportunities in economic life.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article’s central finding of an 18% pay gap for women with the same education level is a direct measure of the failure to achieve this target.

3. SDG 10: Reduced Inequalities

   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex… The pay gap represents a significant barrier to the full economic inclusion of women.
   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The article’s mention of the pay gap’s impact on “Social Security” and “retirement” savings points to the need for policies that address wage inequality to ensure long-term economic security.

4. SDG 4: Quality Education

   • Target 4.5: By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training… The recommendation to introduce women to STEM fields early on is a strategy to eliminate gender disparities in certain educational tracks that lead to higher-paying careers.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions or implies several indicators:

1. Gender Pay Gap: The article explicitly states that “women who earned bachelor’s degrees within the past seven years earn an average of 18% less than similarly-educated men.” This percentage is a direct measurement corresponding to Indicator 8.5.1 (Average hourly earnings of female and male employees, by occupation, age and persons with disabilities). It quantifies the disparity in earnings.
2. Occupational Segregation by Gender: The article identifies “occupational sex segregation” as the main reason for the pay gap. It provides data points that serve as a proxy for this indicator: “Nearly three-quarters of men surveyed work for private-sector companies, while just over half of women do,” and “30% of women work for nonprofits, where compensation is typically lower.” This relates to Indicator 5.5.2 (Proportion of women in managerial positions), as it reflects the distribution of women across different sectors and implies a lower presence in higher-paying industries.
3. Gender Disparity in Fields of Study: The suggestion to be “Introducing women to STEM at an early age” implies a current disparity in the number of women pursuing and entering STEM fields compared to men. This relates to Indicator 4.5.1 (Parity indices (female/male…) for all education indicators), which would measure the ratio of females to males in specific educational programs like STEM.

4. Table of SDGs, Targets, and Indicators

Source: northcentralpa.com