Report on UK Graduate Gender Pay Disparity: A Challenge to Sustainable Development Goals

Executive Summary

An analysis of official UK data reveals a significant gender pay gap among recent university graduates, which emerges at the very beginning of their careers. This disparity persists even among those who have completed identical courses, presenting a direct challenge to the achievement of several Sustainable Development Goals (SDGs), most notably SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Key Findings on Post-Graduate Earnings Disparity

• Five years after graduation, the median annual salary for male graduates is £34,700, which is 14.1% higher than the £30,400 median for female graduates.
• Male graduates earn more on average than their female peers in 29 out of 35 subject groups.
• The pay gap is not solely attributable to different subject choices; it exists within the same fields of study. For example, male maths graduates are most likely to enter computer programming (£49,600 average salary), while female maths graduates most commonly become teachers (£34,300 average salary).
• The largest earnings gap is observed in architecture, where male graduates earn 19% (£6,200) more than female graduates five years after leaving university.

Implications for Sustainable Development Goal 5: Gender Equality

The findings indicate significant barriers to achieving gender equality and empowering all women and girls. The persistent pay gap undermines key targets of SDG 5.

• Economic Empowerment: The disparity in earnings limits the economic empowerment of female graduates from the outset of their professional lives, contradicting the goal of ensuring women’s full and effective participation and equal opportunities in economic life.
• Occupational Segregation: Gendered career choices, where women from STEM fields are more likely to enter lower-paid sectors like teaching while men pursue higher-paid finance or IT roles, perpetuate harmful stereotypes and limit progress towards ending all forms of discrimination against women.

Interlinkages with SDG 4 (Quality Education) and SDG 8 (Decent Work)

The data highlights a critical disconnect between educational attainment and economic outcomes, impacting the broader development agenda.

1. SDG 4 – Quality Education: While access to quality higher education may be equitable, the data shows it does not translate into equal economic opportunities. This undermines the objective of ensuring that education leads to relevant and effective learning outcomes for all, regardless of gender.
2. SDG 8 – Decent Work and Economic Growth: The pay gap is in direct opposition to the principle of decent work for all and the target of achieving equal pay for work of equal value. This systemic inequality hinders inclusive and sustainable economic growth by failing to leverage the full potential of the female graduate workforce.

Identified Causal Factors

The research points to several factors contributing to the earnings gap, which are deeply rooted in societal norms and individual choices.

• Divergent Career Motivations: Previous research suggests male graduates are more likely to be motivated by high salaries, while female graduates may prioritize job security, satisfaction, or personal values, sometimes accepting a lower salary as a trade-off.
• Disparate Job-Seeking Strategies: Men are reportedly more likely to send more job applications and to leverage one job offer to secure a better one at a more prestigious or higher-paying company.
• Under-representation in High-Paying Fields: Women remain under-represented in subjects that lead to the highest-paying careers, such as economics and engineering, and are concentrated in fields like psychology and nursing that traditionally offer lower salaries.

Conclusion: A Call to Action for SDG 10 (Reduced Inequalities)

The early-career gender pay gap among UK graduates is a clear manifestation of economic inequality that directly contravenes the core mission of SDG 10. To reduce this inequality, targeted interventions are required from educational institutions, policymakers, and employers to dismantle the structural barriers and gendered norms that lead to disparate outcomes. Addressing this issue is fundamental to building a just society and achieving the 2030 Agenda for Sustainable Development.

Analysis of Sustainable Development Goals in the Article

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

   The article primarily addresses issues related to gender equality, economic growth, education, and inequality. Based on its focus on the gender pay gap among university graduates, the following Sustainable Development Goals (SDGs) are relevant:

   • SDG 5: Gender Equality: This is the most central SDG, as the entire article is an analysis of the economic disparity between female and male graduates in the UK. It explores how women earn less than men even with identical qualifications.
   • SDG 8: Decent Work and Economic Growth: The article directly relates to this goal by discussing employment outcomes, salaries, and the principle of equal pay for work of equal value. It highlights how gender influences career choices and remuneration, affecting economic growth and the quality of work.
   • SDG 4: Quality Education: While the article does not suggest a gap in access to education, it critically examines the outcomes of that education. It shows that obtaining the same degree does not lead to equal economic opportunities for men and women, raising questions about how well the education system prepares graduates for equitable participation in the workforce.
   • SDG 10: Reduced Inequalities: The article is a case study in inequality within a specific demographic. It focuses on reducing inequalities of outcome based on gender, demonstrating that even with equal educational attainment, significant economic disparities persist between men and women.

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

   Several specific targets under the identified SDGs are directly relevant to the article’s findings:

   • Under SDG 5 (Gender Equality):
     • 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 article shows that women’s economic participation is skewed towards lower-paid sectors (teaching, social care) even when they have qualifications for higher-paid ones (finance, IT), limiting their economic opportunities compared to men.
   • Under 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.” This target is at the core of the article. The analysis of the 14.1% pay gap between male and female graduates five years after university, despite holding the same degrees, directly addresses the failure to achieve “equal pay for work of equal value.”
   • Under SDG 4 (Quality Education):
     • Target 4.5: “By 2030, eliminate gender disparities in education and ensure equal access to all levels of education…” While access is not the issue, the target’s spirit includes equitable outcomes. The article highlights a significant gender disparity in the economic outcomes of education, where women are “under-represented in subjects such as economics, maths and engineering whose graduates attract some of the highest salaries.”
   • Under SDG 10 (Reduced Inequalities):
     • Target 10.3: “Ensure equal opportunity and reduce inequalities of outcome…” The article is a clear illustration of an inequality of outcome. Despite the equal opportunity of attending university and taking the same courses, the financial outcomes for women are significantly lower than for men. The text states, “Female graduates in the UK fall behind men from the very start of their careers, even when they have taken the same courses.”

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 is rich with quantitative data that can serve as indicators to measure progress towards the identified targets.

   • For SDG 5 and SDG 8:
     • Gender Pay Gap Percentage: The article explicitly states a median pay gap of “14.1 per cent” between male and female graduates five years after leaving university. This is a direct indicator of economic inequality.
     • Median Annual Salary by Gender: The figures of “£34,700” for men and “£30,400” for women serve as concrete indicators of the earnings disparity.
     • Earnings Disparity by Subject: The article provides specific examples, such as the 19% earnings gap in architecture and the 64% gap for psychology graduates from Durham University, which are granular indicators of inequality of outcome.
   • For SDG 4 and SDG 10:
     • Occupational Segregation by Gender: The article implies this indicator by describing career paths. For example, “women maths graduates most likely became schoolteachers, with an average salary of £34,300,” while men with the same degree entered “computer programming, where their average annual salary five years later was £49,600.” Tracking the percentage of male vs. female graduates from the same field entering different professions would be a key indicator.
     • Proportion of Women in High-Paying Fields of Study: The article notes that women are “under-represented in subjects such as economics, maths and engineering whose graduates attract some of the highest salaries.” This proportion is an indicator of the structural issues that contribute to the pay gap.

SDGs, Targets, and Indicators Table

Source: ft.com