• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Iran just crossed Trump's red line for resuming all-out war as fighting continues to escalate with no end in sight

2

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

3

Indeed chief economist: Aging Baby Boomers are America's real labor problem, not AI

1

Iran just crossed Trump's red line for resuming all-out war as fighting continues to escalate with no end in sight

2

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

3

Indeed chief economist: Aging Baby Boomers are America's real labor problem, not AI
MPW

Pay Disparity Between Men and Women Even Exists in the Gig Economy

By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
February 6, 2018, 2:43 PM ET
Add Fortune on Google for similar content.

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.

The gender wage gap has persisted—with women making just under 89 cents on a man’s dollar in 2016—even as females have been returning to the U.S. labor force in greater numbers.

But the gig or “sharing” economy has been viewed as an opportunity for equal pay between women and men largely because the lack of flexibility in traditional workplaces has driven much of the disparities in pay. Gig economy jobs, like driving for Uber, are flexible. And that’s led to all kinds of speculation that more job flexibility will narrow the gender pay gap.

The Freakonomics podcast discussed the study’s findings with a few of the economists who worked on it. List says that his assumption going into the project was that the findings would show equal, or close to equal pay.

“If there was a difference, I think the pay gap would slightly favor women,” List said during the podcast. “And this is kind of for two reasons. One, I knew that they had worked fewer hours per week so they had a chance to cherry-pick the better hours during the week. Point number two was, if there was discrimination on the platform, I was thinking that riders would actually prefer female drivers to male drivers.”

The economists found it’s not so simple.

First, it’s important to understand how Uber pays its drivers. This isn’t a traditional workplace where managers are in control of how their workers are paid. Uber provides the tech, or app, that connects drivers with riders. It pays drivers based on a formula that takes into account the length of the ride in miles, how long the ride takes, and, on occasion, the so-called “surge” multiplier, where higher demand can push up rates. The fare is determined by a gender-blind algorithm.

So why are female Uber drivers earning less even when there is no evidence of discrimination? The economists found three explanations: location of pickups, experience, and driving speed.

Here are some of the key takeaways:

  • 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.

 

About the Author
By Kirsten Korosec
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in MPW

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in MPW

t
PoliticsWhite House
Analysis: Trump approves 80% of GOP disaster aid — and 60% for Democrats
By David A. Lieb, M.K. Wildeman and The Associated PressJuly 16, 2026
3 days ago
ruemmler
PoliticsCongress
House Epstein probe calls ‘Uncle Jeffrey’ email author Kathryn Ruemmler, former Obama White House counsel and Goldman Sachs banker
By Joey Cappelletti and The Associated PressJuly 15, 2026
4 days ago
‘Close to as good as it gets’: Jamie Dimon just offered another warning on bubbly markets as Wall Street had a monster quarter
BankingJPMorgan Chase
‘Close to as good as it gets’: Jamie Dimon just offered another warning on bubbly markets as Wall Street had a monster quarter
By Mia OsmonbekovJuly 14, 2026
5 days ago
e
Arts & EntertainmentSocial Media
American influencers turn Erling Haaland into the World Cup’s breakout brand
By Kaitlyn Huamani and The Associated PressJuly 13, 2026
6 days ago
Taylor Swift paid New York City more than $160,000 to cover the costs tied to her wedding, Mayor Zohran Mamdani confirmed
Arts & EntertainmentTaylor Swift
Taylor Swift paid New York City more than $160,000 to cover the costs tied to her wedding, Mayor Zohran Mamdani confirmed
By The Associated Press, Catherina Gioino, Andrew Dalton and Kimberlee KruesiJuly 10, 2026
9 days ago
Around 2.6 million fewer Americans have affordable healthcare access plan as affordability becomes top issue ahead of midterms
North AmericaAmerican Politics
Around 2.6 million fewer Americans have affordable healthcare access plan as affordability becomes top issue ahead of midterms
By The Associated Press and Ali SwensonJuly 7, 2026
12 days ago

Most Popular

Iran just crossed Trump's red line for resuming all-out war as fighting continues to escalate with no end in sight
Middle East
Iran just crossed Trump's red line for resuming all-out war as fighting continues to escalate with no end in sight
By Jason MaJuly 18, 2026
20 hours ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
20 hours ago
Indeed chief economist: Aging Baby Boomers are America's real labor problem, not AI
Commentary
Indeed chief economist: Aging Baby Boomers are America's real labor problem, not AI
By Svenja GudellJuly 18, 2026
1 day ago
U.S. companies have finally gotten $71 billion in tariff refunds, but they’re using it to offset inflation caused by the Iran war
Economy
U.S. companies have finally gotten $71 billion in tariff refunds, but they’re using it to offset inflation caused by the Iran war
By Sasha RogelbergJuly 17, 2026
2 days ago
Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard
AI
Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard
By Aaron Walayat and The ConversationJuly 19, 2026
10 hours ago
FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
C-Suite
FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
By Fortune EditorsJuly 15, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.