MBA Career Outcomes And The Gender Pay Gap

a lot about this issue. It's not getting better by many standards, and maybe the pandemic made it even worse. And it's certainly affecting all parts of the economy and that includes uh NBA's as well. A Lissa Sangster joins us, the CEO of Forte Foundation and Lista, thanks so much for joining us here. So talk to us about the NBA market. Um, I'm on the board of the NBA School at Dukes, so I kind of know the day

to hear. But just share with us, what's the difference the pay gender gap for NBA students when they get out and then made even later in their career. Sure, that's great. I I'd love to say that, you know, we're seeing improvement across the board, but of course every road has its thorn. UM And on the bright side, we're seeing NBA gender pay gap overall shrinks from around two years ago to about now so between men and women. I'm not saying the GAP's gone, but it definitely has

um improved. And where is that improvement impetus coming from. Is that on companies that these graduates are applying for. Is it NBA schools themselves trying to help even things out UM? You know, I think it's a combination of factors. I think we're seeing more women in the NBA pipeline pursuing these UM top careers, so I think you're seeing them have access to more of those high paying salaries UM.

And I think you're seeing companies pay more attention to it over the last few years about how they're advancing UM employees internally and making sure that there is equitable advance intimate across all of those top paying jobs. You know, Lissa, one of the issue things that I've seen experienced personally in my career having managed people UM, is that oftentimes, you know NBA's will male and female will come in at a similar or the exact same compensation package. UM,

But then things go arrive from there. Uh that's where the women will lag in future years. And so when you get to the partner or managing director level, there is by far there's not a fair representation what are the challenges there and what are some of the ways to address those? Sure, So UM, I definitely think different choices are made, and so I think there's kind of a combination of uh decisions by the companies and also

by the individuals pursuing opportunities. And so I think we see in our research that women end up several years later having fewer direct reports, they have had fewer promotions than their male counterparts. And so UM exactly what the find all that UM is not specifically clear. Like I said, it is a combination of things. But I also think that women are often motivated by UM their impact on the organization there UM, they're motivated by kind of the

value that they see that they're contributing. Their less motivated by achieving that top salary and that being the indicator of their success. And so I think that you see women making maybe very different choices about which path they take in their career, and often it might be walking away from a top salary at a big company and going to a smaller company where they feel like they

have bigger impact, maybe not as big as pay. If we kind of step back and take a look at the thirty thousand foot view, an NBA isn't cheap, right. It costs you a lot of money to invest in getting that additional education. Does it still pay off? It definitely doesn't and your long term career earnings and in

the opportunities that are available to you. And so I think that often what you see, especially in these full time programs you mentioned Duke students are coming through this program as career switchers, and they're looking to pivot in their career and go into something that they would not have had an access to normally without that NBA experience or pathway. So it's opportunity to top jobs working for very important companies and places that they can do amazing things.

And so those opportunities aren't always available to you without that pivot. And I will say that one of the things Sporting Foundation does is supply scholarships through our Business School for women pursuing those MBAs so they are given opportunities those top women candidate to pursue these nbas with a substantial scholarship support. So listen, can you give us maybe some examples or an example of an industry or a company that's doing this well that it's narrowing that

gender pay pay gap UM. I think that, uh that I well, I don't know that I have a specific a company or industry. I would say those the companies that are out there working UM at this you know, a graduation you mentioned, they're all on parity, but as

they progress through their career. I think the monitoring of that is probably something that's the bigger companies are doing better because they are required to pay attention to these things from external forces UM and and additionally, they are very internally committed to diversity, equity and inclusion, and so they have big operations inside that are actually monitoring this. And honestly, those who are monitoring it are the ones

that are going to be seeing this success. That doesn't mean that they can eliminate all of the other factors in terms of decision making by the women, but they are looking at how they advance UM diverse UM employees through that pipeline into leadership. All right, lista, thank you so much, we appreciate it. Listened Sankster, CEO Forte Foundation,

talk about the gender pay gap. That is an issue clearly for a lot of businesses and a lot of people, including MBA's Consumer confidence came out for the month of September. Still a pretty good number, but below expectations. Let's check in with Lynn Franco, Director of Economic Indicators and Surveys at the Conference Board to break down this data. So Lynn, again a little bit less than what Wall Street was expecting,

but still a decent number. Help us put into context. Yes, I mean, you know, we had a decline in confidence and it's actually sort of going on a downward trend for the last three months. But a lot of this is really doing really the result of the delta variant, which has really sort of been this dark cloud over consumers. It continues to dampen optimism, but there's still optimistic enough that they feel that the recovery is going to continue not only for the remainder this year, but into two

as well. I find the dig around the labor market particularly interesting. We were just listening to FED chairman Jerome Pale testifying on Capitol Hill in front of the Senate about how participate is still really low. There's a lot of jobs out there, but not necessarily enough people to fill them. And I see that in the survey, fifty six of consumers said that jobs are plentiful. So people know there's jobs out there, Yes, they do. And I think what we're seeing is that some of these labor

shortages are in sort of you know, gu collar type jobs. Um. Some of that is due a to you know, inability to find labor. There's still some fears about COVID, there's still some childcare issues which are preventing women in particular from getting back into the labor force. So there are some challenges um that we are still facing, and a

lot of those are delta related. So I think as we begin to sort of hopefully see the variant retreat a bit, I think we're seeing at least some indications maybe that you know, the levels are starting to come down, that will continue to recover, and that you know, the employment growth will be a little bit more robust. And the Expectations Index, which is based on consumers term outlook for income, business and labor market conditions that fell to

eighty six point six from eight. Is that concerning to you. I think what we're just saying here is a very cautious consumer, right, So we've seen a little bit of a decline in their expectations for the economy over the short term jobs in particular, also a little less so in income. So that's good news because we expect to

consumers to continue to spend and support economic growth. I think it's going to be very important to see what happens over the next month or two because I think we've shifted gears from a very optimistic consumer early in the summer to a more cautious optimistic heading into the fall. How do inflation expectations factor into this as well, because to this point, consumers have been pretty tolerant of the fact that prices have been going up because of higher

input costs. But at a certain level, I would imagine that they're going to become less tolerant in that Fears around inflation with effect behavior, right, you know, generally tend to impact a consumer sub perceptions of earning power, and we would see that sort of in the income expectations. Are interest rate expectations actually fell, So that's good news. It's still elevated, um, but it's it's fallen off a little bit, and so far we really haven't seen it

have a major impact on spending. Supplemental unemployment benefits began expiring for a lot of people in early September. How did that factor into the data or the expectations data? I think you know, it really factors into perhaps income expectations, but we didn't take a hard hit there in terms of employment expectations. That's pretty much following business conditions, right. We need better business conditions and in order to generate more employment. So I think you know, in both ways,

consumers are just a little bit cautious. They've probably hit the pause button temporarily, but we don't think this is sort of a continued downward trend. All right, Lynn, thank you so which we appreciate that. Linn Franco, Director of Economic Indicators and Surveys at the conference board on the consumer confidence data out this morning for the month of September. That was Secretary of the Treasuric Jenny Yelling, along with

FED Chairman j Palell testimony in front of members of Congress. Uh, let's get a little bit of a recap there, we can do it that the Bloomberg's Economics editor Michael McKee. Michael, first of all, why are these two individuals testifying in front of Congress? Why are they bringing their testimony? This

is a relic of the Cares Act. When the Care's Act was passed, it required the Secretary of the Treasury and the Fed Chairman to come up to Capitol Hill quarterly and report on how things are going in terms of spending out the money and the rescue programs that they had in place. So it's a bit of a relic now since most of the money has been distributed, but it's still in place, so so they are there. Obviously this is used in part to do some political

posturing on the behalf of these senators. A lot of debate on the fiscal conversation that doesn't necessarily have bearing for the Fed Chairman. But asked about the debt ceiling was the Treasury secretary and she warned about it being potentially disastrous if it isn't raised, saying that these are bills that are already due for money that's already been spent.

Why does the market seem to not care about it? Then, at this point, because we've been through this before and a number of times over the past couple of decades, and Congress has always extended the debt ceiling at the very last minute. It's a political football. Both sides like

to attack the other side for being profligant. Uh, they only want to spend money when they're in power, and when they're not in power, they want to cut back on spending because they think it makes them look better politically. So that's what's going on. It's just, as you mentioned, a political debate, and the market is fairly convinced that they will settle this because they always have. And meanwhile, on the sidelines, the commentators, as they usually do, say well, gee,

this time could be different. Well what could be a little bit different this time is it's all kind of tied in with the fiscal stimulus legislation, the spending plan that Congress is also looking at, the taxation plan to pay for it. Could this all get tied up? Is this something that the market maybe should be more concerned about. Well, if if we get to that point, the market will suddenly become concerned. It is it is a little more

problematic this time. There's a little bit of a Rube Goldberg effect of how they're going to have to do this. Because the Democrats put forth a combined continuing Resolution to keep the government funded and debt sailing last night, Republicans wouldn't even let them have a vote on it. And so now the Democrats have to decide are they going to take out the Continuing Resolution and vote on that separately, which they probably will, which still leaves the debt limit.

Republicans still say they will not allow the Democrats to vote on extending it, and so the Democrats can put it into the Continuing Resolution or rather continue into the reconciliation bill that holds the Biden plan. But the problem with that is then they need to pass a new budget first with that as an instruction, and then they need to go through a whole the whole day of what they call vote rama, where anybody is allowed to offer amendments. And so it will take time for that

to happen. And I think that's why Janet Yellen put a date on at this time, because she's saying, basically, um, guys, don't screw around. This is how much if you're gonna do this, is how much time you have? Yeah, that's all on the fiscal side, Mike on the monetary policy side, and those who have the ability to decide monetary policy

center shared. Brown asked both Yelling and pal about diversity on the FED Board of Governors and whether it's time to have a black woman and especially in light of the resignations of Rose and Grenham Kaplan yesterday in the wake of the trading scandal, how could we be looking

at a different FED going forward. Well, I think you're going to see in the search committees for both Dallas and Boston a strong effort to find minorities, whether it's a black or whether it's a woman, it could be Hispanic, uh and Alis in particular would be a sort of logical move. So I think you're going to see that, and I think the FED Board will try to influence that the FED has historically been a refuge of old white males, and as was pointed out, there are very

few black economists at the board. And I think Congress is going to continue to keep the pressure on and we will see some changes in a historic day yesterday. You know it's not every day you see two FED presidents step down. Is this going to change the way the FED man, you know, it puts people onto the board or just or tracts talent. It could. I think what you'll see is the FED put in place a

much more robust set of ethics requirements. Perhaps anybody coming in would be required to put their holdings in a blind trust something like that, uh, which you know you can easily argue should have been done before. What they don't want to do is completely keep anybody who's made any money off the board, because yes, the board needs diversity, but that also means they need some people with market ex variants and so uh you know Rob kaplan K from Goldvin Sachs, he was one of the strong market

voices and that's a loss for them at this point. Yea, all right. Michael McKee, economics editor for Bloomberg TV and Radio, thank you so much for your thoughts. We appreciate that. Well, just about twenty minutes ago, Kaylee and I were just sitting here chatting, saying, boy, the supply chain, this is a big issue, the challenges we're facing on a global scale.

And uh, I wonder to what extent that they're contributing to some of this inflation we're seeing out there and I said, we need to get smarter on what's going on out there with the ships and the trains and the trucks. And luckily we have Bloomberg Intelligence with us, and they have the experts on all these industries. At lea classical he's the senior transport logistics and shipping analysts,

one of the most popular analysts these days at Bloomberg Intelligence. Solely, I'm looking at map go on my term and I see a bunch of cargo ships anchored off the coast of Los Angeles. And then even if they get their cargo unloaded, then the trucks have to get the containers and the railroads have to get the containers. Give us an overview of how bad things are out there in terms of global shipping, global logistics. UH, and how do we get here? The supply chains are truly gummed up?

And you know the how we got to this point, which the shocks to the system have really been unprecedented and just one after the other. I mean, obviously economy shut down with the pandemic, and then China recovered quicker and earlier than the US, and that created a lot

of imbalances. UH. And the trans specific trade. So there were ships coming to the southern California and other points unloading um containers, but there were no empty containers to bring back, and that created a capacity crunch on the water. And also the container liner industry has a long history

of just being completely irrational players. They got a little this a plan during this down cycle and they took some ships out uh and they slowly brought them back, so that created um also some some choke points uh. And then it was like one black swan after the next. You know, you had the the the ever given blocking

this to West Canal. Um. You had, um, you just one thing after that, you had the rail industry embraced something called precisions scattering railroading, which is really just six stigma for the rails, and that impacted service, probably not in the best way as well, because they were you know, taking assets off of their network and then when demand came up, you know, they were slow to bring back

those assets. UM. You know, you have you have huge log jams in Chicago, which has always been a problem UM and the rails have been doing what they can uh to kind of alleviate those choke points and not to just to to to ramble on too long, but really it's all about available labor. Um. You know, every transportation company is facing a labor shortage. Uh. You know your listeners might remember last week when FedEx released their earnings,

they pointed out about four fifty million dollars of a headwind. Um. That's a lot of coin. Uh. And that's just trying to find enough people to deliver the packages. And when they have holes in their system, you know, it creates a much less efficient network for them. So Lee is basically what you're telling us here that it is a lot easier to create kinks in the supply chain than it is to smooth them back out. Yeah, and and and and that is a because we're more of you know,

it's for digital globalization. I mean, we're still a global economy. The nikes that you might be wearing are being manufactured in Vietnam or in China. And with China's zero tolerance towards COVID outbreaks, you know you're seeing them shutting down terminals at various ports, very busy ports, and that's creating headwinds as well. And then you know when you have on the U S side, Um, you know, you just don't have enough people to to kind of face that backlog.

I mean, I read the other day on Bloomberg there was something like seventy eight ships waiting outside of l A Long Beach. These are unprecedented times, uh, and it's gonna take a long time, you know, our call for UM rates on at least on the liner side. You know, we believe things will get a little better into the Chinese New Year, but rates will remain a like at these unsustainable levels probably through the first half of the year and then kind of moderate uh into the second half. UM.

And then you have on on the roadside. For trucking in North America, the spot rates are up something like this year, contractual rates are up double digits. UM. They have pricing power because they can't find the people to drive the trucks to deliver the stuff. So when you talk to these transportation companies, whether the big shipping companies are the rails and trucks, is this a supply chain problem that's going to go into next year? I mean hard stop. Yeah, It's it's gonna be uh an impact.

I mean I think that it will moderate, you know, um, you know, and but that's assuming a lot of things. That's assuming not another black Swan event or another you know, variant of the coronavirus which could shut down whether it's manufacturing, um or or reports. And then you also have right now, I mean you have another kind of crazy thing. We're talking about China having not enough power, um so they have to manage their economy and they might close the manufacturing.

So you know, if you're expecting you know, some furniture from from China, you might have to wait another month. Alright, Lee, thanks so much for jumping on with us. Really appreciated. This is a global issue. It as a one that's been developing since the pandemic began, and it doesn't appear to be uh easing anytime soon. Lee Classgow, Senior Transport Logistics and Shipping Annals from Bloomberg Intelligence. He joins us on the phone from Bloomberg's Princeton office. Uh and Kaylee,

this is something you know. I'm sure it's earnings coming up here. Once again, we're going to have companies probably blaming this using as an excuse perhaps for the weather. Right, Yeah, but I think we're going to see some serious margin pressures coming in, which is to be expected that profit margins would contract. It's what a lot of analysts, strategists

are expecting. But when you talk about those higher input costs, higher freight costs, higher labor costs, all that is cost and is it transit where That's going to be the big question. Thanks for listening to the Bloomberg Markets podcast. You can subscribe and listen to interviews with Apple Podcasts or whatever podcast platform you prefer. I'm Matt Miller. I'm on Twitter at Matt Miller. Put on false Sweeney. I'm

on Twitter at pt Sweeney before the podcast. You can always catch us worldwide at Bloomberg Radio