Students’ choice of technical courses aged 16 is a driving force behind the gender pay gap between disadvantaged men and women, according to a new report.

The report, The road not taken: the drivers of course selection, published today by the Social Mobility Commission, says young people from disadvantaged backgrounds - particularly women - are more likely to choose low-earning technical courses. 

Researchers analysed the course selection and earnings of people who completed their GCSEs in England between 2001-02 and 2004-05, and also examined socioeconomic differences among more recent cohorts. 

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The research found that, regardless of GCSE success, disadvantaged young women are the most likely to choose post-16 technical courses which then lead to lower paid jobs in the UK, such as in retail, childcare and social care. Disadvantaged men, however, are likely to choose technical subjects that lead to higher earnings, such as engineering and IT.

Half of disadvantaged young women choose courses ranked in the bottom 25 per cent in terms of future earnings, which compares with 31 per cent of men from similar backgrounds. The post-16 subject choices of disadvantaged women explain about 10 per cent of the earnings gap they face compared with more advantaged men, according to the report.

Tackling the gender pay gap for disadvantaged students

Alastair Da Costa, social mobility commissioner for adult skills and further education, said it was worrying that women appeared to choose subjects that lead them to a smaller wage packet than men. 

He said: “The gender pay gap between disadvantaged men and women remains stark. There is no doubt growing up in deprivation, especially for women, has an enduring impact on early career earnings. 

“Policy needs to focus on closing the attainment gap between disadvantaged and more privileged students, and to ensure that all students get high-quality exposure to technical education prior to making their post-16 subject choice. 

“We also recommend increasing earnings in many occupations predominantly chosen by women from disadvantaged backgrounds and low levels of educational attainment, especially childcare and adult social care.  Addressing these barriers early on could have a significant impact on women’s future earning potential and measurably reduce the gender and class pay gap.

“We hope this report is a wake-up call ahead of the government implementing its ambitious agenda to reform technical and further education, which was laid out in the Skills for Jobs White Paper.”

The research found that academic qualifications led to the highest earnings, while 62 per cent of classroom-based technical qualifications and 40 per cent of apprenticeships led students on a path to the bottom 25 per cent of earnings. When academic and technical qualifications are combined, earnings increase, with 70 per cent of combined courses ranked in the top 50 per cent of earnings.

The study also found “glaring” regional differences, with disadvantaged women in London much more likely to pick courses that lead to higher earnings than disadvantaged women in other regions of England (28 per cent for inner London compared with 32 per cent for outer London). Disadvantaged women in the North East (17 per cent) and North West (20 per cent) are the least likely to take high-earning courses. 

And when it came to ethnicity, the research found that the groups most likely to take low-earning courses are disadvantaged black Caribbean students and disadvantaged white British women. Only 27 per cent of women and 22 per cent of men from disadvantaged black Caribbean backgrounds took courses that led to the top 50 per cent of earnings. Less than a quarter of disadvantaged white British women selected courses that led to salaries in the top 50 per cent, which compared with 33 per cent of disadvantaged white British men.

The impact of post-16 choice: the Social Mobility Commission’s recommendations in full 

• Reduce educational inequalities up to the age of 16.
• Provide more career guidance on technical education choices pre-16, especially for disadvantaged women with low to average attainment, and disadvantaged men and women from black Caribbean backgrounds.
• Present students with more advice when they are deciding on technical or academic pathways. The research found that young people taking higher-level courses are usually better informed about the education pathways and opportunities open to them compared with those taking lower-level courses.
• Continue to allow blended technical and academic qualifications as these courses lead to relatively high earnings.
• Target local barriers, such as helping disadvantaged students with travel costs, so that these are not an obstacle to education.
• Trial behavioural interventions that target gender norms, peer pressure or work experience in technical jobs.
• Increase earnings in occupations predominantly chosen by women from disadvantaged backgrounds, and with low levels of educational attainment, especially childcare and adult social care.