Stochastic modelling of intersectional pay gaps in universities

Area of Science:

• Socioeconomics
• Higher Education Studies
• Mathematical Modeling

Background:

• Gender and ethnicity pay gaps are well-documented in academia.
• Existing research often uses static snapshots or standard academic lifespan models.
• A nuanced understanding of lifetime earnings requires accounting for career duration.

Purpose of the Study:

• To investigate the drivers of lifetime earnings differences among university academics.
• To explore the impact of career length on gender and ethnicity pay gaps.
• To establish a framework for quantifying a working lifetime in academia.

Main Methods:

• Development of a stochastic mathematical model.
• Incorporation of age at workforce entry and exit patterns.
• Analysis of differing salary trajectories during academic careers.
• Parameterization using national data from Aotearoa New Zealand.

Main Results:

• Lifetime earnings gaps are substantially larger when accounting for varied career durations.
• Women across all ethnicities tend to have shorter academic careers.
• Women and minority ethnic groups experience significantly lower lifetime earnings than white, European men.

Conclusions:

• Career length is a critical, often underestimated, factor in academic pay disparities.
• Policies addressing gender and ethnicity pay gaps must consider career progression and retention.
• The quantification of working lifetime is essential for accurate earnings gap analysis.