Gender pay gap: What role can business schools play in closing this disparity?

The paradox of education and wage disparity

It is appalling that a woman who has worked to progress academically and achieve a prestigious business degree still has to battle the pay gap. A woman’s education is seen as having less value than a man’s. And it’s not about women being less assertive or ambitious. Even when women negotiate their salaries or hold leadership positions, research shows that many still earn less than men. It has nothing to do with their ability or ambition, but rather a deeply ingrained and institutionalised bias that undervalues ​​women’s work, both at home and in the workplace.

The gender pay gap is a widespread problem that affects multiple generations. It is not limited to senior positions in companies; it affects women in all walks of life, regardless of their education or experience. The most affected group are unskilled women working in low-paid jobs, who face the most severe pay disparities. Their earnings are lower not only because they lack formal education, but also because they are women. Sadly, this is also the case for highly educated women. This serves as a sad reminder that no matter how many degrees or honours a woman earns, the pay gap remains a persistent obstacle.

The role of business schools in change

Business schools, as centres of learning and leadership development, have a unique opportunity to tackle this issue head-on. However, this requires a concentrated effort that goes beyond superficial initiatives. It is about embedding gender equality at the core of management education. It should ensure that tomorrow’s leaders – both men and women – enter the workforce with a clear understanding of these challenges and a commitment to change.

Grassroots initiatives to change the conversation

The foundation of any meaningful change begins with education. Business schools must integrate gender equity into every aspect of their curriculum. This is not about adding a token course on “Women in Business,” but about ensuring that every course, case study, and discussion includes considerations of gender dynamics.

When studying leadership, students must not only examine the attributes of effective leaders, but also the ways in which gender influences leadership experiences and opportunities. Similarly, when analyzing financial management, they must address the doctrinal economic reality of gender pay gaps and how corporate organizations can mitigate such gaps.

This approach would allow gender equality to be introduced into business conversations as a natural consequence, rather than an afterthought. Students, who are the future CEOs, CFOs, and managers, would emerge from business school armed not only with a solid knowledge of fundamental business principles, but also with a deeper understanding of biases and the ways in which they influence business outcomes. They would be empowered to recognize and confront these biases in the workplace, leading to a more equitable and inclusive business environment.

High-level interventions to build networks and influence policies

While grassroots education is important, business schools must also focus on higher-level interventions that can drive systemic change. Mentoring and networking are key areas where business schools can have a significant impact. Effective mentoring programs should foster meaningful relationships that empower women to navigate their careers with confidence. However, these programs must be more than just a box-ticking exercise. This includes engaging male leaders as mentors who can advocate for their female students to help dismantle the barriers that contribute to the pay gap.

There is also a need to rethink networking events, which often reinforce existing power dynamics rather than challenge them. Business schools could host events that bring together students, alumni and industry leaders to specifically address cases of gender equality in the workplace. These events would not only provide women with valuable connections, but would also create a forum to discuss and develop strategies to close the gender pay gap.

Shared responsibility

It is critical to highlight and reiterate that closing the gender pay gap is not the sole responsibility of women. Women are often told to tackle the “problem” of the gender pay gap alone, taught to negotiate better, encouraged to “participate” more and “work smarter.” When the problem is structural, then structural solutions are what are needed. Business schools must educate all students, regardless of gender, about the systemic nature of the problem and the role they play in achieving equal pay. Creating a shared sense of responsibility will help develop the next generation of leaders who see equity not just as a “women’s issue,” but as a fundamental aspect of good business practice.

A call to action

Despite the complexity and difficulty of solving the gender pay gap, it is a challenge we can overcome. Business schools have a critical role to play in addressing this disparity by educating the next generation of leaders and advocating for broader systemic change. Let’s be clear: we are not shifting the burden onto women to fix this problem, but rather we are ensuring that we create a culture of gender equity where everyone addresses this issue as a shared goal. With the right strategies and a commitment to action, business schools can help close the gap, ensuring that women are paid the wages they deserve – not one cent less.

—The author, Radhika Shrivastava, is executive director of Fortune Institute of International Business (FIIB). The views expressed are her own.