Study Breakdown – Female Uber Drivers Get Paid Less Than Men

Last updated on July 18th, 2018 at 06:54 am

Women who drive for Uber are paid approximately 7% less per hour than men who drive for Uber.

That’s according to a new study Uber conducted in collaboration with Stanford and The University of Chicago.

Cody Cook, Rebecca Diamond, Jonathan Hall John A. List, and Paul Oyer

It should be noted that the Uber gender pay gap is less than the national average, which stands at about 12% to 20% depending on which study you look at. However, Uber’s master algorithm, which determines how much drivers are paid, is supposed to be blind to factors like gender. So, how did this happen?

The study, which has not undergone peer review yet, concludes that male Uber drivers earn more due to three factors:

1. Female Uber drivers have higher turnover than men, and more experienced Uber drivers tend to earn more.
2. Male Uber drivers are more likely to drive in lucrative areas.
3. Male Uber drivers drive faster on average.

Uber says the study uncovered no evidence that “outright discrimination, either by the app or by riders, is driving the gender earnings gap.”

Experience

Uber attributes about one third of the gender wage gap to experience. As many veteran Uber drivers know, there’s a learning curve when it comes to driving. Experience counts and the study provides evidence of that. Uber drivers with more than 2,500 rides earn about $3 more per hour than drivers with less than 100 rides.

About 75% of women stop driving for Uber after six months, compared with 65% of men. That’s a significantly higher attrition rate. Moreover, from week to week, the average female Uber driver is on the road for just under 13 hours, compared with about 18 hours for male Uber drivers. According to the study, the higher attrition rate, combined with fewer average hours on the road, means that over time, there will be a lot fewer experienced female Uber drivers on the road. Since experienced Uber drivers make the most, having fewer experienced drivers in the pool brings down the average hourly earnings for female Uber drivers.

Cody Cook, Rebecca Diamond, Jonathan Hall John A. List, and Paul Oyer

Driving Speed

On average, men drive faster than women, and the study attributes about one half of the gender wage gap to this factor. On the Uber platform specifically, men drive approximately 2.2% faster than women. This means male Uber drivers, on average, can complete more rides over time than female Uber drivers. However, speed demons beware. The study notes that while driving a little faster leads to positive returns, those returns diminish and turn negative if you go too fast.

Driving Location

The rest of the gender pay gap, about one sixth, is due to driving location. Male drivers are more likely to drive in high surge locations. These locations generally include downtown areas during afternoon rush hours, residential areas during morning rush hours, and nightlife areas on the weekends.

The study also cites some other factors that may contribute to the pay gap. Male Uber drivers tend to take trips where the distance to get to the passenger is shorter. Also, male Uber drivers, on average, take more long distance trips.

Cody Cook, Rebecca Diamond, Jonathan Hall John A. List, and Paul Oyer

Can the Uber gender pay gap be closed?

According to one of the study’s authors, not anytime soon. Rebecca Diamond noted:

I think this is showing that the gender pay gap is not likely to go away completely anytime soon. Unless somehow, things in our broader society really change, about how men and women are making choices about their broader lives, than just the labor market.

What do you think? Can Uber’s gender pay gap be closed, and how? Leave your answer in the comments.

Source: Uber Pay Gap Study