n 2006, Carnegie Mellon University professor Linda Babcock and her colleagues published research showing that women initiated negotiations—especially salary negotiations—far less often than men. Their findings offered at least a partial explanation for the persistent pay gap between men and women.
For readers looking for a quick answer:
Women today negotiate pay as often—or even more often—than men, yet the gender pay gap persists. The problem appears to lie less in negotiation behavior and more in differences in career paths, promotion opportunities, and workplace structures.
In the United States, women’s earnings have hovered around 80% to 82% of men’s earnings for much of the past two decades, underscoring how differences in opportunity—not just negotiation behavior—shape long-term income outcomes.
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The Catch-22 Women Faced in Salary Negotiations
Early research revealed a troubling dynamic.
In a 2007 study, Harvard Kennedy School professor Hannah Riley Bowles, along with Babcock and California State University professor Lei Lai, found that evaluators penalized female candidates who negotiated higher salaries—but did not penalize male candidates for doing the same.
Women who negotiated compensation were often viewed as less likable or less desirable colleagues. Evaluators were less interested in working with them in the future.
The result was a negotiation catch-22:
- Ask for more, and risk backlash.
- Stay silent, and accept lower pay.
This research helped shape two decades of advice encouraging women to negotiate more assertively.
Have Things Changed? Yes—and No
Roughly twenty years later, researchers asked whether women still negotiate less than men.
The answer: not anymore.
In a 2024 study researchers Laura Kray (University of California, Berkeley), Jessica Kennedy (Vanderbilt Business School), and Margaret Lee (UC Berkeley) surveyed nearly 1,000 graduates of a top U.S. business school about whether they negotiated salary for their first post-MBA job.
Their findings surprised many observers:
- 54% of women reported negotiating salary, compared with 44% of men.
- In a second survey of nearly 2,000 alumni, 64% of women and 59% of men reported negotiating promotions or higher compensation.
In other words, women—particularly highly educated professionals—are negotiating compensation at least as often as men.
Yet the pay gap persists.
Among MBA graduates studied, women earned about 88% of men’s pay at graduation, and after ten years earnings dropped to roughly 63% of male peers’ earnings, according to the researchers.
Negotiation behavior alone clearly does not explain the gap.
As Kennedy notes, “Women are willing to do their part… negotiating well isn’t enough to close the gender pay gap.”
If Negotiation Isn’t the Problem, What Is?
If women now negotiate at similar or higher rates, why does the wage gap remain?
According to Bowles and many labor economists, the issue lies largely in career trajectories, not just starting salaries.
Key drivers include:
- Women being underrepresented in higher-paying industries and leadership roles
- Career interruptions related to caregiving responsibilities
- Workplace structures that reward long, inflexible work hours
- Slower promotion pathways and unequal access to stretch opportunities
- Bias in hiring and advancement decisions
In short, income inequality often develops over time rather than at the negotiation table alone.
Organizational Changes Matter
Organizations can accelerate progress in several ways:
- Creating flexible and family-friendly workplace policies
- Encouraging all genders to take parental leave
- Designing roles so work is more transferable rather than dependent on constant availability
- Increasing transparency in compensation and promotion criteria
- Reducing bias in hiring and advancement decisions
Recent laws banning employers from asking candidates about prior salary aim to prevent past pay inequities from carrying forward into new roles.
Research also shows that when people believe the outdated narrative that “women simply don’t ask,” they may oppose reforms aimed at reducing bias—slowing progress further.
Negotiation Still Matters—but It Isn’t Enough
It remains wise for all employees to negotiate compensation, benefits, and job roles throughout their careers.
But individual negotiation strategies alone cannot solve systemic pay disparities. Structural and organizational reforms play a crucial role.
Until outdated assumptions about gender and negotiation disappear—and workplace systems evolve—progress toward pay equity will remain uneven.
What other aspects of salary negotiations deserve further study? Share your thoughts in the comments.
Claim your FREE copy: Salary Negotiations
Discover how to refine your negotiation skills with this free special report, Salary Negotiations: How to Negotiate Salary: Learn the Best Techniques to Help You Manage the Most Difficult Salary Negotiations and What You Need to Know When Asking for a Raise, from Harvard Law School.
