A recent study by the National Association of Colleges and Employers (NACE) highlights a persistent gender pay gap among Maryland workers who earned bachelor’s degrees within the past seven years and work full-time. The research found that women in Maryland earn 82 cents for every dollar earned by men, with the average male salary $14,000 higher than that of female counterparts. This gender pay gap, driven by systemic factors, poses significant challenges to women’s economic security.
Mary Gatta, NACE’s Director of Research and Public Policy, attributed the gender pay gap to “occupational sex segregation,” where men and women gravitate toward different industries with varying pay scales. “The pay gap continues as women continue in their careers, which not only impacts their income in their paycheck each week, but also, it’s less money they’re paying into Social Security,” Gatta said. “It’s less money they’re putting into their retirements. So it has immediate impacts around economic security, but also economic security as we age.”
The study revealed stark differences in employment sectors. Nearly 75% of men work in the higher-paying private sector, compared to only 55% of women. Meanwhile, 30% of women are employed in nonprofit organizations and 10% in government roles, both of which typically offer lower compensation. These trends in occupational segregation significantly contribute to Maryland’s gender pay gap, as women are overrepresented in lower-paying fields.
Gatta emphasized the need to introduce young women to high-paying industries like STEM (science, technology, engineering, and math) to close the gender pay gap. She also highlighted the importance of salary negotiation skills. “We also need to think about salary negotiation,” Gatta said, “and helping remove any concerns recent college grads might have about negotiating, helping prepare students for salary negotiations.” Equipping women with the confidence and tools to advocate for fair pay could mitigate disparities early in their careers.
The NACE study also found that 33% of women attribute slow career progression to lacking an advanced degree, compared to 27% of men. This perception may further exacerbate the gender pay gap, as women may feel compelled to pursue additional education to compete in higher-paying roles, incurring more time and financial costs. Addressing these barriers through targeted mentorship and career guidance could help women advance in fields that offer better economic opportunities.
Maryland’s gender pay gap aligns with national trends, where women earn approximately 82 cents for every dollar earned by men, according to 2024 U.S. Bureau of Labor Statistics data. The state’s diverse economy, with significant public and nonprofit sectors, amplifies the impact of occupational segregation. Efforts to address the gender pay gap in Maryland could set a precedent for other states, particularly by promoting equitable access to high-paying industries and fostering transparent salary negotiation practices. By tackling these systemic issues, Maryland can enhance economic security for women, both in the short term and throughout their careers.
