Author: Maggie Smith
Introduction
Education has long been considered a key driver of economic opportunity, with higher levels of attainment generally leading to greater earning potential. In North Carolina, recent data from the American Community Survey reveals a notable trend: women are pursuing and completing higher education at slightly higher rates than men. However, despite these educational gains, a persistent earnings gap remains, with women earning less than their male counterparts at every level of education.
Women’s Educational Achievement in North Carolina
Women in North Carolina have made significant strides in higher education. According to the latest data, 24% of women hold a bachelor’s degree or higher, compared to 22% of men (Figure 1). This pattern is consistent across various levels of post-secondary education. Although the gap in attainment is not overwhelming, the trend reflects a broader national pattern of increasing college enrollment and degree completion among women.
Figure 1
Earnings Disparities Despite Educational Gains
Despite slightly higher educational attainment, women's median earnings lag behind men's at every education level (Figure 2). One of the most notable findings is that the earnings gap widens at higher levels of education. Women with some college or associate’s degrees earn about 27% less than their male counterparts, while the gap increases to nearly 34% for those with graduate degrees.
Thus, although education generally leads to higher earnings, the financial returns on education appear to differ by gender. The widening gap at advanced education levels suggests that additional factors, like occupational segregation, industry representation, and other labor market dynamics may influence these outcomes.
Figure 2
Field of Study Differs Between Men and Women
Differences in fields of study may play a role in earnings disparities. Indeed, according to data from the American Community Survey, men and women tend to pursue different academic disciplines. Men are more likely to enter fields that typically lead to higher-paying careers, such as engineering, while women are more represented in education and arts, humanities and other related fields (Figure 3). These differences may contribute to variations in earnings even among workers with similar levels of education. However, it’s important to note that even in the same occupation, women tend to earn less than men as discussed in a previous LEAD article.
Figure 3
Conclusion
In 2023, women in North Carolina earned postsecondary degrees at higher rates than men, yet this progress did not translate to equal earnings. This data raises interesting questions about the relationship between education and earnings. While education is clearly valuable for both men and women (earnings increase with education level for both groups), the persistent and widening gap at higher education levels suggests that other factors beyond educational attainment influence earnings outcomes. One potential factor may be the choice in field of study, as men and women tend to concentrate in different academic disciplines that may lead to varying career paths and salary potential.