Flexible work through apps like Uber has some features that should narrow the gender pay gap: there are no convex returns to long hours and earnings are determined by a gender-blind formula without negotiation. However, this paper documents an average hourly earnings gap of 7 percent between male and female Uber drivers in the US. Three factors completely explain this gap. Because drivers improve with experience on the platform, the fact that the average male driver is more experienced than the average female driver explains one third of the pay gap. Men’s slightly higher driving speed — a 2.2% difference — further explains one half of the gap. The remainder of the gap is explained by men driving in locations with higher surge and shorter wait times.
Cody Cook, Rebecca Diamond, Jonathan Hall, John A. List, Paul Oyer
Economics and Market Design