"Female Uber drivers make 7% less per hour than their male counterparts—even though the algorithms that determine pay for the ride-hailing service are gender blind, according to a multi-year study.
The study, led by economists, examined data from more than 1.8 million drivers and 740 million Uber trips in the United States between January 2015 and March 2017. The paper, called “Gender Earnings Gap in the Gig Economy: Evidence From Over a Million Rideshare Drivers,” was written by five economists, including two employed by Uber, two Stanford professors, and John List, chairman of the University of Chicago economics department. List is also the chief economist at Uber."
Why did women receive less pay? They quit at higher rates (and therefore have less experience on average), they drive slower, and they drive less often during peak demand.
"77% of women quit the Uber platform after 6 months compared to 65% of male drivers.
Experience accounts for one-third of the earnings gap, according to the paper. Drivers who have taken more than 2,500 trips earn an average of $3 more per hour than those with less than 100 trips. Men, on average, accumulate more experience by working more hours each week and being less likely to stop driving with Uber.
About half of the earnings gap is explained by differences in driving speed, according to Uber. The researchers found that, on average, men drive 2.2% faster than women. The researchers noted that there is a positive expected return to driving faster. However they also note returns may turn negative at excessive speeds. This difference in driving speed is not unique to Uber. Data gathered from the National Highway Travel Survey indicates that a gender gap in driving speed exists in the wider population as well.
The remaining one-sixth of the gap in earnings is explained by differences in where people choose to drive, with men, on average, driving in locations with higher surge and lower wait times."
http://fortune.com/2018/02/06/uber-gender-pay-gap-study/
The study, led by economists, examined data from more than 1.8 million drivers and 740 million Uber trips in the United States between January 2015 and March 2017. The paper, called “Gender Earnings Gap in the Gig Economy: Evidence From Over a Million Rideshare Drivers,” was written by five economists, including two employed by Uber, two Stanford professors, and John List, chairman of the University of Chicago economics department. List is also the chief economist at Uber."
Why did women receive less pay? They quit at higher rates (and therefore have less experience on average), they drive slower, and they drive less often during peak demand.
"77% of women quit the Uber platform after 6 months compared to 65% of male drivers.
Experience accounts for one-third of the earnings gap, according to the paper. Drivers who have taken more than 2,500 trips earn an average of $3 more per hour than those with less than 100 trips. Men, on average, accumulate more experience by working more hours each week and being less likely to stop driving with Uber.
About half of the earnings gap is explained by differences in driving speed, according to Uber. The researchers found that, on average, men drive 2.2% faster than women. The researchers noted that there is a positive expected return to driving faster. However they also note returns may turn negative at excessive speeds. This difference in driving speed is not unique to Uber. Data gathered from the National Highway Travel Survey indicates that a gender gap in driving speed exists in the wider population as well.
The remaining one-sixth of the gap in earnings is explained by differences in where people choose to drive, with men, on average, driving in locations with higher surge and lower wait times."
http://fortune.com/2018/02/06/uber-gender-pay-gap-study/