All Financial Wisdom
At Uber Men Earn More Than Women…But There is no Discrimination?
In recent times, we have heard much news on the need to achieve wage equality between men and women.
A recent study “The Gender Earnings Gap in the Gig Economy: Evidence from over to Million Rideshare Drivers” in January 2018 by Stanford University has analyzed the pay gap between Uber drivers on more than 1 million people .
The study has shown that there is a wage gap of 48 percent in terms of weekly salary per month, $397.68 in the case of men compared to US $268.18 for women.
We ask ourselves: To what are these wage differences owed within Uber?
The report on Uber was quoted by the lawyer Axel Kaiser, who took the opportunity to make fun of women and their feminist struggle.
“Study shows that Uber women earn 7% less than men, and that the algorithm is neutral as opposed to gender,” he said in his Twitter account.
He added: “men know how to make better use of the system, you drive faster and they do it in more dangerous times and areas. Or is it a conspiracy? “
John List, one of the main authors of the study of the wage gap in Uber, said that the differences in behavior between men and women are due to the fact that women tend to have greater limitations to develop their jobs. “Men work more hours and make more trips than women.”
“Why? Largely because women have more obligations, for example, to take their children to school in the mornings. Or because they have to take them to soccer class in the afternoon. “
“These responsibilities do not allow women to gain experience. As creators of public policies, we should look for ways to alleviate those limitations, “said the expert in a radio interview.
Are John List’s arguments based on the Stanford University study?
If we compare the hourly wage worked in Uber, that gap is reduced to 7 percent, that is, $21.28 charged by men versus US $20.04 charged by women, as can be seen in the table below.
Basic Summary Statistics
The study on the Uber wage gap has analyzed the reason for this difference between income per hour worked and has found three factors that fully explain this gap, and none has to do with discrimination:
Experience in the platform: men tend to work longer hours and endure more time on the platform, and that explains 36 percent of the gap, as seen in the graph “Average income per hour, US” of the study:
Average Hourly Earnings
Speed: men tend to drive faster, which explains 48 percent of the observed wage differences, as can be seen in the “Mean Parameters” table of the study:
The place of driving: men drive in areas of greater activity, which accounts for 28 percent of the different salaries they receive, as can be seen in the graph “Accumulation of trips during a driver’s week” of the study :
In short, the wage gap between men and women is not produced by systematic discrimination against women or intentional discrimination on the part of the company, that is, they do not work for free for almost 2 months, as UGT has indicated many times, but rather, such and As evidenced by the case of Uber drivers, there are other types of explanations that help to understand these differences.
Therefore, these types of issues and controversies about the wage gap should be addressed with conciliation policies.
That is, offering tax incentives to companies and workers, and through better education that achieves greater training for students to develop the skills and knowledge required by the labor market in an environment of flexibility.