An Analysis of Freakonomics' Podcast, What Can Uber Teach Us About the Gender Pay Gap?
The gender pay gap that exists between men and women throughout the world has been a hot topic of conversation amongst feminists, researchers, and scholars alike. Despite global data suggesting that women; on average, earn 30% less than their equally qualified male counterparts, the reasoning behind this inequity is still unknown. Recently, Uber opened their employment and wage data to five renown economists to be analyzed for the presence and explanation of a gender pay gap. Since Uber operates as a member of the growing "gig economy" and allows their drivers to adhere to self-determined schedules, their company seemed ideal for this analysis.
Throughout the course of this study, economists from Uber and Stanford University chose to focus on the city of Chicago, in which 30% of all Uber drivers are women. They interpreted raw data from January, 2015 - March, 2017. Overall, this included statistics from 1.8 million drivers and 740 million Uber trips.
On average, men driving for Uber make 7% more per hour when compared to women.
Uber's ride-share algorithm does not account for the gender of drivers or riders. Researchers also discovered that riders do not prefer one gender over the other when choosing their drivers. Together, these two statistics eliminate the possibility of discrimination being a contributing factor to the gender pay gap.
Instead, Uber's gender pay gap can be broken down into three categories.
1. The decisions of each driver pertaining to when and where they are able/ want to drive.
2. A driver's experience and how that relates to them taking advantage of the highest paying opportunities.
3. On average, men are driving more trips than women per hour.
Additionally, the researchers found that women have high demand for temporal flexibility. This drastically effects the fluctuation of their wages, when compared to men who are typically able to maintain a more consistent, long-term schedule with Uber.
Once one accounts for these relative differences, it is likely that men and women are being paid the same.
Instead, Uber's gender pay gap can be broken down into three categories.
1. The decisions of each driver pertaining to when and where they are able/ want to drive.
2. A driver's experience and how that relates to them taking advantage of the highest paying opportunities.
3. On average, men are driving more trips than women per hour.
Additionally, the researchers found that women have high demand for temporal flexibility. This drastically effects the fluctuation of their wages, when compared to men who are typically able to maintain a more consistent, long-term schedule with Uber.
Once one accounts for these relative differences, it is likely that men and women are being paid the same.
Uber's participation in this research suggests that the company as a whole intends to improve their corporate social responsibility (CSR). By identifying the problem areas which lead to a wage disparity between men and women, Uber is making a public effort to express concern and work towards a more equitable future. Their attentiveness to gender inequities may provide them leverage in the "gig economy", throughout which they are currently competing with companies like Lyft. Thus, if the consumer values gender equality and fairness, then they will face higher switching costs when considering alternative ride-share programs.
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