Pay growth for women stops at this age
Pay growth for college-educated women suddenly stops at around the age of 40, according to new findings from compensation research firm PayScale.
PayScale found that women between the ages of 22 and 33 see their wages grow at a faster rate than men, according to a CNBC report on the study. But around age 40, wage growth suddenly stops for women.
By contrast, college-educated men see their pay continue to rise through their early 50s. By the age of 54, college-educated men are out-earning their female peers by $32,800.
The reason for this gap? PayScale chief economist Katie Bardaro tells CNBC it all comes down to job choice.
Bardaro says jobs that men choose — such as software developer and engineering roles — have longer real-wage growth.
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By contrast, women choose professions — teacher, health care worker, social worker, administrative worker — where wages don’t rise as much over time.
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How to earn more money
If you are female and want to earn more money, know that a lot of the power to unlock a big salary rests in your hands. For pointers, check out “10 Tips to Remember When Asking for a Raise.” The first tip on the list is to become more educated about your marketplace value:
Figure out what your work is worth in comparable workplaces. Visit sites like Salary.com and Glassdoor. Search for your job title and ZIP code to see what others in your field are earning. If you’re making less than the average and have valuable experience in your field, use this as leverage in salary negotiations.
What do you think of PayScale’s findings? Sound off in comments below or on our Facebook page.
