Gender Gap: What women do with their MBAs

A survey of 2009 students at European business schools by research provider Universum found that women MBAs aspired towards employers that had a good reputation, strong ethical standards and a high level of social responsibility. MBA men report being most interested in companies with inspirational top management, a good reputation and innovative products and services.

As for the jobs they're choosing 22 per cent of women seek marketing and advertising jobs with their MBAs. Management consulting positions drew in 20 per cent of female grads and financial services attracted 11 per cent. There are a handful of industries that attract more women than men year after year. Post-MBA, women dominate fields such as consumer goods, health care, retail, non-profit and government. Men on the other hand are more likely to go into consulting, energy, investment banking, private equity and IT fields.

Choice of industry does come with financial consequences, though. The high numbers of women going into lower-paying fields like marketing and non-profit work may contribute to the gap in women's earnings compared to those of men. According to a 2009 report by the Association of MBAs, a global business school accreditation group, the gap is a dramatic 48 per cent: Post-MBA, men's average salary is US$ 82,300 and women's is US$ 42,500.

Sadly, the gap in earnings goes beyond industry, too. A recent study by Catalyst, a non-profit group that researches women in business, reported that women start out in lower-level positions and make US$ 4,600 less than men in their first post-MBA jobs, even when experience, industry, location and parenthood were equal.

On the upside, women MBAs do use their degrees to aid upward mobility. According to the Association of MBAs report, women are much more likely to hold manager roles after earning a business degree.

While most female MBA grads are using their degrees to achieve business success, Tonya Olpin, executive director of the National Association of Women MBAs points out that a large portion still opts out of the workforce, often to raise children or participate in volunteer work. According to a 2009 study by the Haas School of Business in UC Berkeley, 28 per cent of women with children had left the workforce 15 years after receiving an MBA - a dramatic difference from the 6 per cent of female Medical Doctors with children who had dropped out. The drop-out rate for men was not studied for this report. However, a 2010 report by the Center for Work-Life Policy, a nonprofit think tank, shows that 31 per cent of women voluntarily left the workforce in 2009, compared with just 16 per cent of men.

Hilary Sears, chair of the Association of MBAs notes that "after the amount of money they spend on the MBA, you'd think they'd want a return on that investment," but the so-called brain drain is a stark reality impacting companies across the world and it is indeed reflected in the numbers.