Women benefit the most from taking higher education

Women take more education than men and gain more from it. But men earn more than women regardless of education.

Smilende mannlig student holder en bokstabel i biblioteket

Female-dominated programmes result in lower salaries – for both women and men, according to a new study. (Illustration: iStockphoto)

Sara Seehuus, researcher at the Institute for Social Research (ISF), has recently published an article in the journal Sociology. The study examines the relationship between education and labour market outcomes.

“Over the past few decades, the level of education has increased more among women than among men in Western countries. This development has led to debates about whether men are falling behind in the education system and in society in general,” says Seehuus.

“At the same time, research shows that women gain more financially from higher education than men do,” explains Seehuus, who together with Thea Bertnes Strømme conducted the study and wrote the article.

The researchers have also analysed the level of education and gender composition in different subjects.

“It was exciting to take the research a step further by looking at how the financial return on higher education varies based on the gender composition of study programmes.”

“What did you find out?”

“One of the main findings is that women benefit most from higher education, but that female-dominated programmes yield lower returns than gender-equal and male-dominated study programmes – and this applies to both women and men.”

Men have the highest income regardless of education

Seehuus highlights three interesting findings.

“Firstly, we find that the income gap between those with and without higher education is somewhat greater for women than for men, which means that women have more to gain financially from higher education.”

She explains how men with a bachelor’s degree have on average a 12 per cent higher income than men with an upper secondary education, while the difference for women is 18 per cent.

Similarly, the difference between those with an upper secondary education and those with a master’s degree is 28 per cent for men and 36 per cent for women.

At the same time, Seehuus points out that men have higher incomes than women at all levels of education.
“Secondly, female-dominated programmes yield lower returns than male-dominated and gender-equal programmes at all levels of education, and this applies to both men and women.”

“A common assumption is that female-dominated programmes generally provide lower returns, simply because they are educational pathways that often lead to a job in the public sector, such as health workers or kindergarten teachers, while the male-dominated ones more often lead to jobs in private companies, often with higher salaries.”

Seehuus emphasises that this has been adjusted for in the study by including additional analyses, including controlling by sector.

“The additional analyses show that there are still major differences between the return on female-dominated and male-dominated education. In other words, the fact that men and women often work in different sectors is not the whole explanation,” she says.

“Those concerned about gender differences in educational attainment should also be concerned about what type of education men and women take, as this has a significant impact on their opportunities in the labour market,” according to Sara Seehuus, senior research fellow at ISF. (Photo: ISF)

Type of education matters most for men

A third finding, Seehuus explains, is that the income gap between those with a female-dominated education and those with a gender-equal or male-dominated education is even greater for men than for women.

In figures, this means that the income of men with a female-dominated education is on average 12 per cent lower than that of men with a gender-balanced education, while the difference for women is just under 5 per cent.

“What could be the explanation for that?”

“This can be interpreted as men ‘losing out’ more than women by taking female-dominated programmes.”

However, Seehuus emphasises that men with a female-dominated education have a higher income than women with a female-dominated education, whether at bachelor’s or master’s level.

“Are there many new findings in the study?”

“Yes, few previous studies of the relationship between education and labour market outcomes have taken into account both the level of education and the gender composition of subjects.”

“This is important because men and women often choose different programmes,” says Seehuus.

“Previous research from Norway and other countries has shown that women have the most to gain from higher education, which may be related to which study programmes men and women typically choose.”

In Norway, men who have taken a male-dominated vocational programme have relatively good incomes, according to Seehuus, which means that the income difference between those with and without higher education is smaller among men than women.

Why more women are taking higher education

Seehuus believes the findings are important at an individual level because they can tell us something about men’s and women’s incentives to take different types of education.

“But it’s also important to research this to shed light on how education is linked to men’s and women’s opportunities in the labour market.”

“For example, there’s great concern about more women than men taking higher education. But it turns out that the extent to which this gives women an advantage in the labour market largely depends on what type of higher education they take.”

“Most women who pursue higher education are enrolled in female-dominated programmes that yield lower returns than male-dominated and gender-equal programmes,” explains Seehuus.

“What do we need more insight into going forward?”

“One thing we should continue to research is why female-dominated programmes generate lower returns than gender-equal and male-dominated programmes. That’s something we can’t say anything about on the basis of our study.”

“Haven’t found a ‘glass escalator’ for men”

The fact that women have more to gain from higher education and that female-dominated education yields lower financial returns than gender-equal and male-dominated education is consistent with previous research from Europe and the USA, according to Seehuus.

“Men having more to lose by taking a female-dominated education is somewhat at odds with what’s known as the ‘glass escalator’ theory, which suggests that men in female-dominated professions have career advantages that, for example, put them on a fast track to management positions.”

When asked how the findings stand in contrast to the “glass escalator” theory, Seehuus explains that since the study is descriptive, it is difficult to say anything about the causes. One possibility could be that the males who opt for female-dominated programmes are primarily low-achievers.

“When we control for school performance in additional analyses, this does not appear to be the explanation. Although some studies have shown that men in female-dominated professions progress faster in their careers, there are also studies that point in other directions.”

Seehuus refers to certain experimental studies on discrimination, which show that employers in female-dominated professions prefer to hire women over men. The research points is somewhat divergent, so this is something she believes should be looked at further.

New policy for gender-segregated education?

“Do you think your study should have any consequences for policy in the area of higher education and research?”

“We don’t make any specific policy proposals, but our findings suggest that those concerned about gender differences in educational attainment should also be concerned about what type of education men and women take, as this has a significant impact on their opportunities in the labour market.”

The study confirms previous knowledge showing that women have greater financial incentives to pursue higher education than men.

At the same time, the results show that female-dominated study programmes yield lower financial returns for both women and men, and for all levels of education.

“This may help to explain why so few men choose female-dominated study programmes,” Seehuus points out.

According to the researchers, encouraging men to enter female-dominated fields by improving salaries in these fields could therefore be useful in reducing gender segregation in education and the labour market.

Translated by Totaltekst.

More about the article

Sara Seehuus and Thea B. Strømme are behind the article that was published in Sociology: “Gendered Returns to Education: The Association between Educational Attainment, Gender Composition in Field of Study and Income”.

Previous research has documented that level of education is positively associated with income, and that women gain greater relative returns from higher education than men. In practice, this means that women have more to gain financially from taking higher education.

At the same time, it is a well-known fact that female-dominated study programmes have lower financial returns than gender-balanced and male-dominated programmes.

Sociological explanations of gender-segregated education often point to gender socialisation and gender stereotypes as drivers of gender-differentiated educational and occupational choices. Economic theories, such as human capital theory, view education as an investment in human capital, where positive returns provide incentives to invest in education. According to the researchers, these are complementary rather than competing theories, since both perspectives can shed light on their findings.

Data and methods:
The study is based on register data from Statistics Norway, which includes information on income and education for several year groups. Income is measured here as the sum of income from pay and net income from self-employment.

The outcome variable is income measured at the age of 34–36 years for the birth cohorts 1971–1985.
The level of education is divided into three categories: upper secondary education, bachelor’s degree and master’s degree.

The gender composition of the study programmes is divided into female-dominated, male-dominated and gender-balanced fields. Various control variables are included, such as parents’ education and income, part-time work and immigrant background.