How the ‘Promotion Gap’ Is Widening the Wealth Divide for Women, According to Yale Research
The buzz in offices is not always about projects or deadlines. Sometimes, it’s about who moved up the ladder and who did not. That can sting when someone delivers strong results and still sits still for years. A closer look at recent research from Yale uncovers something that explains this gap. It is called the promotion gap, and it is shaping how wealth is distributed between men and women in an unfair manner.
Many workplaces still rate women highly for performance but question their growth potential. Data from studies of large firms shows women receive performance scores that outpace men, yet they are 13 to 14 percent less likely to be promoted. This repeated pattern slows careers and builds a wider financial divide over time. Fewer promotions mean fewer raises, fewer bonuses, and fewer opportunities to lead the kind of projects that lead to higher pay.
How Potential Becomes A Roadblock
The potential score is often based on traits managers think predict future leadership. Words like assertive or ambitious come up, and those are often tied to male stereotypes. In practice, that means managers see men as a better bet for the next big role. Bias, even when unspoken, shows up in those ratings. Research by the London School of Economics has shown that women’s success is sometimes explained as luck, while men’s success is credited to skill. Those unspoken narratives shape decisions that build wealth for one group and stall it for another.
There is also a social side to how promotions work. In many offices, men report to other men more often than women do, and those networks can translate to faster career jumps. Studies from Harvard have highlighted that dynamic. At the same time, women get handed extra work like planning events or mentoring colleagues, tasks that keep the company running but rarely get counted as leadership potential.
Why This Affects More Than Titles
When promotions are uneven, the effect spreads beyond the office. The gender pay gap in the United States sits at women earning 84 cents for every dollar earned by men, according to data analyzed by the National Women’s Law Center. That gap does not come from a single source. A large share of it comes from how people are placed in jobs and who gets access to higher-level positions. Promotions are a direct link in that chain. Over time, missing those steps can cost hundreds of thousands of dollars in lost earnings.
International data shows similar trends. Research by the International Labour Organization and OECD points out that in many countries, women are underrepresented in top income groups and overrepresented in low‑pay jobs. That imbalance is not explained by education anymore. In fact, women often match or exceed men in degrees earned. The missing link lies in career progression. When women are funneled into roles with limited upward paths, the gap widens further.
What Needs to Shift Inside Companies
Image via Unsplash/TheStandingDesk
Firms need to rethink how they define potential. Yale’s research points out that rating systems are often too subjective and leave room for bias. Shifting focus to measurable skills and results makes a difference. Transparent criteria for promotions also reduce the chance of hidden hurdles. Some organizations have started blind reviews for internal applicants by focusing on documented outcomes rather than traits linked to stereotypes.
There is also value in tracking who does the extra work that keeps teams running. Reports like McKinsey’s Women in the Workplace show that many women in leadership spend time on diversity efforts and team support that rarely count toward advancement. Recognizing those contributions matters because those efforts shape culture and productivity. When they are ignored, it sends a signal that only certain types of contributions lead to the next level.
How Women Are Responding
Plenty of women are stepping into self‑promotion despite discomfort with the concept. Studies show that making achievements visible and asking for promotions leads to better compensation growth. It makes sure managers know the results and impact delivered. This approach can feel foreign in cultures where people are told that hard work speaks for itself. Data suggests that waiting quietly does not work when others are more vocal about what they have done.
Some are also seeking sponsors rather than only mentors. A mentor offers advice. A sponsor advocates for a promotion or a stretch project. That extra support is proving to be a game-changer in organizations where advancement is still tied to relationships as much as results.
Looking Ahead
The promotion gap is not a small oversight. It is a driver of long-term inequality. Each missed promotion proceeds by shaping wealth, influence, and future opportunities. Shifting how companies assess potential, reward hidden contributions, and build fairer review systems will change outcomes. The numbers show why that matters.