Graduated together, paid unequally: Why do American women early in their careers still make 18% less than men?

Time of India

28-07-2025

They took the same classes, wore the same cap and gown, and stepped into the workforce with equal ambition. Yet, within months of graduation, the numbers already tell two different stories: American women early in their careers are earning, on average, just 82 cents for every dollar their male peers make.
A new analysis by the National Association of Colleges and Employers (NACE) lays bare the persistent gender pay gap that emerges right after graduation, and doesn't fade over time. Even among full-time professionals who earned their bachelor's degrees in the last seven years (2017–2023), women's average salary was $63,822, compared to $78,114 for men.
A pay gap that starts early
The 18% gap closely mirrors findings from NACE's First Destination Survey for the Class of 2023, where women graduates earned just 80% of what men earned.
What's more striking is that this gap remains steady across the first decade of work, pointing to structural inequities rather than temporary fluctuations.
Experts say this isn't just about starting salaries, it's about career trajectories, industry choices, and opportunity access that differ sharply by gender.
Why the gap? It's not about effort
One of the clearest culprits is occupational segregation: the fact that men and women tend to enter different industries after graduation.
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According to NACE:
Men are more likely to be in manufacturing, finance, and engineering: industries with higher average pay.
Women are overrepresented in education, healthcare, and nonprofit sectors, which tend to pay less despite similar qualification levels.
Additionally, only 53% of women were employed full-time six months after graduation compared to 60% of men, with more women pursuing further education (23% vs. 19%).
Equal starts, unequal strides
Interestingly, when asked about job satisfaction, men and women reported similar levels: around one-third said they were extremely satisfied, and about half were somewhat satisfied. But when it came to how fast they felt their careers were progressing, men were slightly more likely to say their growth exceeded expectations.
The reasons for career acceleration also split along gender lines:
Men cited networks, leadership roles, and graduate degrees.
Women pointed to mentorship and professional development as key drivers.
This suggests that women may rely more on institutional support, while men are more likely to benefit from informal networks and positional power—forms of social capital that are harder for women to access early on.
What can colleges and employers do?
The findings paint a clear picture: Equal graduation doesn't mean equal opportunity. So what can be done?
For educators and career services:
Provide industry-specific salary data and negotiation training for all students, especially women.
Expand mentorship programs with access to alumni and industry leaders.
Normalise conversations around career confidence, not just career choices.
For employers:
Audit starting salaries and raise transparency around pay bands.
Offer structured internal growth paths so women aren't left guessing their next move.
Recognise that mentorship and networks are critical forms of equity, and actively support them.
Bottom line: It starts on day one
The gender pay gap is not just a late-career issue. As the NACE data shows, it's baked into the first steps of a graduate's professional life. Addressing it requires more than policy—it demands cultural shifts, targeted support, and intentional equity.
Because if they graduated together, they deserve to rise together too.
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