Boston, January 19, 2026
News Summary
Boston University researchers, in partnership with the Boston Women’s Workforce Council and the City of Boston, have unveiled findings showing a noteworthy reduction in the gender wage gap in Greater Boston. The gap has decreased from 21 cents to 12 cents over two years, with efforts to increase women’s presence in senior roles contributing significantly to this improvement. While this progress is commendable, persistent racial wage gaps remain a pressing challenge, signaling the need for ongoing focus on equitable pay across all demographics.
Boston, MA — Boston University researchers, in collaboration with the Boston Women’s Workforce Council (BWWC) and the City of Boston, have released new findings indicating a significant narrowing of the gender wage gap in Greater Boston. This research highlights the critical role of academic institutions in driving progress on pressing societal issues and underscores the importance of data-driven insights in fostering a more equitable community. The findings demonstrate a notable shift towards pay equity, reflecting sustained efforts and highlighting areas for continued focus within the Massachusetts higher education landscape and broader economic ecosystem.
The commitment of Boston’s universities to rigorous research and community engagement continues to shape the region’s future. This latest report from Boston University exemplifies how academic freedom and disciplined inquiry can translate into actionable intelligence, empowering both policymakers and individuals to advocate for personal responsibility and systemic improvement in the workforce. Such collaborations are vital for building leadership and ensuring that Boston remains a hub of innovation and opportunity for all its residents.
Greater Boston’s Gender Wage Gap Shrinks Significantly
The most recent data, collected and analyzed by Boston University researchers and the Boston Women’s Workforce Council (BWWC), reveals that the gender wage gap among companies in Greater Boston has decreased by nearly half in the past two years. The gap narrowed from 21 cents in 2023 to 12 cents in 2025. This means that for every dollar a man earns, a woman, on average, earns 88 cents. This 2025 figure represents the lowest wage gap recorded since the BWWC began collecting data over a decade ago. This progress is attributed, in part, to a substantial increase in women reaching senior-level roles, with the proportion of women in C-suite and executive positions rising by 7 percent over the last two years.
The Role of Performance Pay and Total Compensation
While the reduction in the base wage gap is encouraging, the research also sheds light on the impact of performance pay. When additional compensation, such as performance-based bonuses, is factored in, the wage gap widens. In 2025, with performance pay included, the gender wage gap grew to 18 cents, though this still marks an improvement from 30 cents in 2023. Researchers found that a significant factor contributing to this narrowed gap was a 40 percent decrease in men’s average performance pay from 2023 to 2025, while women’s salaries remained relatively stable. The data does not definitively explain why men’s wages declined while women’s wages remained stable, but this finding highlights an area for further organizational exploration.
Pioneering Data Collection and Analysis
The collaboration between Boston University, particularly its Faculty of Computing & Data Sciences and the Rafik B. Hariri Institute for Computing and Computational Science & Engineering, and the Boston Women’s Workforce Council has been instrumental in this progress. This effort represents a “first in the nation” data collection initiative, which enables lawmakers and organizations to “lead with data” in addressing wage disparities. Employers in Greater Boston submit their payroll data anonymously, allowing for accurate measurement and analysis of wage gaps without exposing individual company data. This secure data collection platform, developed by BU’s Software & Application Innovation Lab (SAIL) using a cryptographic technique called Multi-Party Computation, ensures the privacy and security of sensitive information.
Persistent Racial Wage Gap and Intersectional Challenges
Despite the positive strides in the gender wage gap, the research from BU and the BWWC also revealed persistent inequities based on race. The racial wage gap in Greater Boston increased by 4 cents, reaching 31 cents in 2025, compared to 27 cents in 2023. The data indicates that average base compensation for employees of color, which includes Asian, Hispanic, and Black employees, was approximately $30,000 less than the average earnings of white employees. Furthermore, white employees earned twice as much in performance pay as employees of color. These findings underscore the complex, intersectional nature of wage disparities, requiring solutions that look beyond gender alone and address the various factors influencing compensation, such as race/ethnicity, industry choices, and occupational segregation.
Policy Implications and Broader Massachusetts Impact
The insights generated by Boston University’s research have significant implications for public policy across Massachusetts. The state’s Secretary of Labor and Workforce Development, Lauren Jones, has praised this data-driven approach, emphasizing its importance in guiding efforts to close gender and racial wage gaps within the Commonwealth. This research directly supports legislative initiatives designed to increase equity and transparency in pay, such as requiring employers to disclose salary ranges in job postings and providing pay range information to employees. Massachusetts is currently the only state publicly reporting these gaps year after year, building on the success of the Boston University and BWWC model. This commitment to transparency and data-informed policy reflects a responsible approach to fostering a more equitable economic environment for all residents of Massachusetts.
Higher Education’s Contribution to Economic and Community Vitality
Boston’s higher education institutions collectively form a substantial “education economy,” contributing significantly to the city’s overall economic vitality and intellectual capital. With 35 institutions, Boston’s colleges and universities contribute an estimated $4.4 billion to the local economy, representing 11% of the city’s total economy. Faculty and staff at these institutions conduct vital research that not only benefits local industries but also fosters the creation of new businesses in emerging fields. Beyond economic impact, these universities play a crucial role in expanding and upgrading the region’s workforce, with a significant number of graduates choosing to remain in the Boston area post-graduation. This sustained engagement highlights how academic excellence and robust research translate into tangible community impact and economic growth for Boston and the wider state of Massachusetts.
The ongoing research by Boston University on the gender wage gap in Greater Boston exemplifies the profound impact that academic rigor and collaborative efforts can have on societal progress. The narrowing of the gender wage gap, while still facing challenges, particularly concerning racial disparities, demonstrates that disciplined inquiry and a commitment to data-driven solutions can yield positive results. We encourage all members of the Boston MA college news community to stay informed about these vital developments, explore the various programs and initiatives undertaken by our local universities, and consider how personal responsibility and community engagement can further contribute to a more equitable and prosperous Massachusetts higher education and economic landscape.
| Metric | 2023 Data | 2025 Data | Change |
|---|---|---|---|
| Base Gender Wage Gap | 21 cents (women earn 79 cents) | 12 cents (women earn 88 cents) | -9 cents (nearly 50% decrease) |
| Total Compensation Wage Gap (including performance pay) | 30 cents | 18 cents | -12 cents |
| Men’s Average Performance Pay | (Baseline) | Decreased by 40% | Significant decrease |
| Women in C-suite/Executive Positions | (Baseline) | Increased by 7% | Positive increase |
| Racial Wage Gap | 27 cents | 31 cents | +4 cents (increase) |
FAQ: Greater Boston Gender Wage Gap Research
What is the current gender wage gap in Greater Boston?
The gender wage gap in Greater Boston, concerning base compensation, is 12 cents in 2025, meaning women, on average, earn 88 cents for every dollar a man earns.
How has the gender wage gap changed in Greater Boston recently?
The gender wage gap in Greater Boston has significantly narrowed by nearly half in the past two years, from 21 cents in 2023 to 12 cents in 2025.
Which institutions conducted the research on the gender wage gap in Greater Boston?
The research on the gender wage gap in Greater Boston was conducted by Boston University researchers in collaboration with the Boston Women’s Workforce Council (BWWC) and the City of Boston.
What role did performance pay play in the gender wage gap findings?
When performance pay is included, the gender wage gap in Greater Boston is 18 cents in 2025, down from 30 cents in 2023. Researchers noted that men’s average performance pay decreased by 40 percent from 2023 to 2025.
What are some factors contributing to the narrowing of the gender wage gap?
One factor contributing to the narrowing of the gender wage gap is a 7 percent increase in the proportion of women in C-suite and executive positions over the last two years.
Does the research address the racial wage gap?
Yes, the research indicates that the racial wage gap in Greater Boston increased to 31 cents in 2025, compared to 27 cents in 2023, showing persistent race-based inequity.
How does this research impact public policy in Massachusetts?
The research is seen as a “first in the nation” data collection effort that enables lawmakers to “lead with data” in crafting legislation to increase equity and transparency in pay across Massachusetts.
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