The peak earning potential for working women in general is reached by them about 11 years prior to men. Additionally, women get $35,000 less in the average salary compared to their male counterparts, found a recent study.
The study which was primarily conducted in the United States by the salary site PayScale, also found that when women, who were typically university-educated, reach the age of 44 years, they also reach their career earnings peak and the average earnings for the women at that stage is about $66,700. In comparison under the same parameters, the men reach their earnings peak time when they are 55 years old which is 11 years after the women do and the median salary for men at that age is $101,200.
The research report was based on a total number of 1.4 million people and their median earnings and all of the participants also participated in the salary survey of PayScale’s between 2016 and 2019. This report is another example of the currently much debated about issue of the gender pay gap in general existing in the world today.
The gender pay gap is defined as the average difference between the salaries that are given to working men and women. This latest research and findings from PayScale also possibly indicates that the gap has widened.
The organization had also conducted a similar study on the topic in 2012. Compared to the older study, the results of this latest study shows that despite a rise for both men and women in terms of their median peak earning ages— reaching 39 years and 48 years respectively, there has been a widening of the overall gender pay gap. Compared to the outcome of the 2012 study, currently women have to toil for two years longer to equal the peak earnings of men on the average than they had to in 2012.
This pay disparity found in the study was seen across all of the 22 major occupations that were included in the study. The study noted that their peak earnings is reached by women at the age of 35 years and a median salary of $75,000 while men continue to have increases in salaries till they attain the age of 56 years when they have a median earnings of $168,800.
Significant disparities in peak earnings between men and women were also noted in the fields of health care, sales, life sciences and management.
Disparity between starting salaries for men and women was the primary cause of the high gender pay gap as noted by PayScale. Another factor was the time out of work that typically women face while starting a family.
“Our insights on when wages peak for men and women, broken down by occupation and racial/ethnic group, highlights how complex the gender pay gap is,” the report noted.
“Unless policies are designed with all people in mind, pay gaps will not only persist, but can actually worsen,” it added.
(Adapted from CNBC.com)