Healthcare wage gaps narrowed after COVID-19

A new analysis of U.S. healthcare wages before and after the COVID-19 pandemic found modest narrowing of pay gaps across jobs, education, race and gender. 

The study was published Monday, Nov. 3, in Health Affairs.  

Researchers found that among nonphysicians healthcare workers, aides and assistants saw the largest wage gains, with earnings rising 13.6% between 2015 and 2024. By comparison, registered nurses and technicians had smaller increases of 3.8% and 1.1%, respectively. Advanced practice providers, who earn higher average salaries, saw 8.3% wage growth over the same period. 

The wage increases occurred in an organic way, said senior author Bianca Frogner, director of the Center for Health Workforce Studies at the University of Washington School of Medicine.  

“In a way, the silver lining for the pandemic was that it created more job opportunities within the system for low-wage workers,’ she said. “I hope we can take advantage of the moment we see here and not let it fade.” 

When categorized by education level, workers with only a high school diploma saw their earnings rise by 13%, compared with less than 1% growth for those with a college degree. Researchers said this finding reflects a broader post pandemic “wage compression” in which lower-paid workers had faster wage growth than higher-paid employees. 

Black and Hispanic healthcare workers saw wage increases of 15.5% and 10.2%, respectively — faster than the increases seen among white and Asian workers, although racial and ethnic pay gaps persisted. Women’s wages grew 8.8% during the span, compared with 2.1% wage growth for men, thereby narrowing the gender wage gap in healthcare. 

Frogner noted that some of the increases are not keeping up with inflation or with higher costs of food, daycare and transportation.  

Looking at median income trends from 2015 to 2024, the increases were smaller for groups such as advance nurse practitioners or physician assistants. However, these median weekly salaries were considerably larger than those of aides and assistants — approximately $2,000 a week versus $600 a week. in 2015, the authors wrote.  

 “These earnings gains and the modest compression we observed are a hopeful signal,” the paper said. “But without continued policy support, these trends are unlikely to last.” 

The researchers said continued investment in job quality and pay for frontline and direct care workers is essential to maintaining a stable, diverse and equitable health care workforce. 

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