KEY POINTS:
Women's pay rates are lagging behind men's because women aren't as ballsy as the blokes when they negotiate.
New data from Statistics New Zealand shows educated women earn on average 20 per cent less than men five years after they have finished their tertiary study.
The pay gap
exists in every field, and is most startling in the health sector, where men earn 71 per cent more. The figures are based on income information from people who took out student loans or received study allowances.
The Equal Pay Act was passed 35 years ago, in 1972.
Employment experts told the Herald on Sunday women were less likely to negotiate a good salary when they started a job and did not apply for higher positions as often as men.
Shenah Gleisner, chief executive of the Ministry of Women's Affairs, said it was known women started on lower salaries.
"Anecdotal evidence suggests they're less aggressive negotiators at the beginning of a job," she said.
And Colin Mathieson, chief executive of recruitment agency Alpha Personnel, said women would not go for a promotion unless they were certain they could do the job. "It's what choices they make once they get in there and what roles they go after," he said. "Guys are generally pretty confident. They think they will be okay even if they're a bit undercooked for the role. Women generally want to make sure they're well-cooked before they put their hand up for a role."
However, corporate culture alone does not explain the differing pay rates. The experts said women often chose lower-paid careers, even if they had the same qualification as men.
"Young men are making choices which are leading them into roles where they are more likely to earn more than young women," Mathieson said. "On average more young men have got [their] career in mind than young women."
The "old boys' network", while greatly diminished, also still discriminated against women, Gleisner said. "It is a factor, yes. But it's understandable - if anyone is going to choose somebody they will choose someone they're comfortable with. It's not some horrible conspiracy theory. It just happens."
Mathieson said comparing a man and a woman in the same position would not show much difference. He said employers did not knowingly discriminate against women when it came to pay rates.
"The clients we deal with do not suggest to us they would pay a young woman less for the same role than a man. It's not about role-per-role comparisons, it's about the choices that young men and young women are making."
Gleisner said the gaps were a real concern for women and New Zealand society. "It's a waste of talent. It's a worry for women if they are constrained in their choices and aren't able to have economic sustainability and have economic well-being."
It's getting better every day
Jason Eade is determined and business-minded. Five years out of university, the 28-year-old earns $66,000, but with his two other businesses on the side, he took home $118,000 last year.
"It's going good. I'm enjoying it - it's getting better and better every day. I'm hoping it will be a little bit more next year. You've got to make it happen. I'm pretty business-minded."
Jason's career and take-home pay is extremely important to him. While his 7-year-old son is top of his priorities, the career is next on the list.
After finishing university with a BCA he took a fulltime job at an accounting firm he worked for during his studies.
He's had three job changes since and each time negotiated hard for his salary. He got $7000 more than he was offered when he shifted to his latest firm.
And negotiation is why he thinks there's a gender gap.
"I think that's got a big part to do with," says Jason.
"Looking at what friends have done, the women seem to take anything that's put in front of them."
Work is not my main focus
Five years out of university, Sarah Rice is earning $43,000, working as a data policy analyst for a government department. She knows it's not the biggest salary but she's pleased with the state of her career.
"I am pretty happy with that pay. Obviously most people would be happier with more. But I've just started a new job and it's a bit of a pay increase."
The 27-year-old likes her job but she isn't career obsessed. "It's not as much my primary focus as it would be for a lot of people. It's more important that I enjoy it than be paid a ridiculous amount of money.
"I would like to have a healthy balance between work and other things."
After finishing university with a psychology degree, Sarah spent three months in Christchurch. She shifted to Wellington to do some temp admin work and was made permanent.
Sarah has had three different roles, and with her new jobs, she's negotiated for a good salary but hasn't pushed.
She knows there's a gender pay gap but hasn't felt directly affected. "I've never felt discriminated against in terms of pay. But that gap has always been there."
MIND THE GAP
Overall average gross salary five years after study:
Men: $36,850
Women: $30,640
Health
Men: $60,660
Women: $35,530
Information technology
Men: $37,170
Women: $28,110
Management and commerce
Men: $43,000
Women: $31,130
Education
Men: $42,240
Women: $34,790
Engineering and related technologies
Men: $37,140
Women: $31,650
* All figures are for people who finished studying in 2000
