Vanderbilt study finds women with MBAs are most likely to work less
The battle for work-life balance among female white collar employees, especially those with children, is something women have struggled with for decades. Though past studies have found little evidence that women are opting out of the workforce in general, first-of-its-kind research by Vanderbilt 2012/13 FedEx Research Professor, professor of law and economics and of management Joni Hersch shows that female graduates of elite undergraduate universities are working much fewer hours than their counterparts from less selective institutions.
鈥淓ven though elite graduates are more likely to earn advanced degrees, marry at later ages and have higher expected earnings, they are still opting out of full-time work at much higher rates than other graduates, especially if they have children,鈥� said Hersch.
Hersch鈥檚 research finds that 60 percent of female graduates from elite colleges are working full time compared to 68 percent of women from other schools.
It’s all about the kids
The presence of children strongly influences how much a woman works. Labor market activity is lower for women with children, but the gap between those women with and without children is largest for elite graduates. Among elite graduates, married women without children are 20 percentage points more likely to be employed than their elite counterparts with children, while among non-elite graduates, the difference in the likelihood of employment is 13.5 percentage points.
MBA moms work least of all
Hersch found that when comparing graduates from elite and less selective schools, the largest gap in full-time labor market activity is among women who also earned a master鈥檚 in business degree.
鈥淢arried MBA mothers with a bachelor鈥檚 degree from the most selective schools are 30 percentage points less likely to be employed full time than are graduates of less selective schools,鈥� said Hersch.
The full-time employment rate for MBA moms who earned bachelor鈥檚 degrees from a tier-one institution is 35 percent. In contrast, the full-time employment rate for those from a less-selective institution is 66 percent. The gap remains even after taking into account the selectivity of MBA institution, personal characteristics, current or prior occupation, undergraduate major, spouse鈥檚 characteristics, number and age of children, and family background.
Fewer female CEOs?
Hersch contends these statistics show that the greater rate of opting out by MBA moms with undergraduate degrees from elite institutions has implications for women鈥檚 professional advancement.
鈥淓lite workplaces, like Fortune 500 companies, prefer to hire graduates of elite colleges,鈥� said Hersch. 鈥淭hus, lower labor market activity of MBAs from selective schools may have both a direct effect on the number of women reaching higher-level corporate positions as well as an indirect effect because a smaller share of women in top positions is associated with a smaller pipeline of women available to advance through the corporate hierarchy,鈥� said Hersch.
Comparing degrees
Hersch found a similarly large gap among women who later earned a master鈥檚 in education. Sixty-six percent of tier-one graduates are employed full time compared to 82 percent of graduates from non-elite institutions.
Other factors also contribute to which women are working more hours.
鈥淓stimates show greater labor activity among women with a bachelor鈥檚 degree in a field other than arts and humanities; those with graduate degrees; those in higher-level occupations such as management, science, education and legal; and women who are not white,鈥� said Hersch.
Why opt out?
A common question associated with opting out is whether highly educated women are willingly choosing to exit the labor force to care for their children or whether they are “pushed out” by inflexible workplaces. But Hersch said this hypothesis of inflexible workplaces does not explain why labor market activity differs between graduates of elite and non-elite schools.
鈥淕raduates of elite institutions are likely to have a greater range of workplace options as well as higher expected wages than graduates of less selective institutions, which would suggest that labor market activity would be higher among such women,鈥� Hersch writes.
鈥淲ithout discounting the well-known challenges of combining family and professional responsibilities, increasing workplace flexibility alone may have only a limited impact of reducing the gap between graduates of elite and non-elite schools.鈥�
Gathering the data
Hersch gathered her data from the 2003 National Survey of College Graduates, which provided detailed information for more than 100,000 college graduates. The survey was conducted by the U.S. Census Bureau for the National Science Foundation.
To identify schools considered elite and to put these schools into tier levels, Hersch used both the Carnegie Classifications of institutions of higher education and Barron鈥檚 Profiles of American Colleges. Barron鈥檚 Profiles looks at quality indicators of each year鈥檚 entering class (SAT or ACT, high school GPA and high school class rank, and percent of applicants accepted). Barron鈥檚 then places colleges into seven categories: most competitive, highly competitive, very competitive, competitive, less competitive, noncompetitive, and special.
The Carnegie Classifications are based on factors such as the highest degree awarded; the number, type, and field diversity of post-baccalaureate degrees awarded annually; and federal research support. For example, Research universities offer a full range of baccalaureate programs through the doctorate, give high priority to research, award 50 or more doctoral degrees each year, and receive annually $40 million or more in federal support.
Hersch鈥檚 full working paper, titled 鈥淥pting Out among Women with Elite Education,鈥� can be read or accessed .