Category Archives: jobs and pay

Shock! The Pay Gap is Uber Bullshit!

OK, OK, so you already knew the gender pay gap was bullshit.

Perhaps you’re with Jordan Peterson and go the multivariate analysis route.

Or perhaps like Warren Farrell you prefer to dissect in detail the specific factors which show just how an apparent gender pay gap arises.

Or perhaps you just know that the gender hourly pay rate gap for people under 40 working full time in the UK is essentially zero.

Or perhaps you prefer to observe that, if women were paid less for the same job, companies simply wouldn’t employ men.

Take your pick.

But here is a very neat study that, I think I can say, bangs the very last nail into the coffin lid.

It’s a study based on Uber drivers in the USA.

The great thing about this study is that the Uber algorithm is totally and indisputably gender blind. The computer just records time of journey, length of journey, time of day, etc. What the driver gets paid cannot depend on sex.

You’re ahead of me aren’t you?

Yup, men get paid 7% more per hour.

The study was able to identify the reasons. It’s made up of three parts.

20% of the pay gap is due to what trips or routes the driver opts for. Some tend to be more lucrative than others. For example, trips to an airport are good payers. Men tend to optimise on more lucrative routes.

30% of the pay gap is experience. Uber drivers have a high turnover, but higher for women. So men gain more experience from having done the job longer. This is important because it takes experience to learn what routes, times, etc pay best. The evidence is that both sexes learn at the same rate – but men stick at it longer so end up more canny.

The remaining 50% of the pay gap is…..wait for it…..men do more work per hour. The data shows that by driving just a couple of percent faster on average men fit in more trips per hour.

Sorted.

In summary: men stick at the job longer, gain more experience, are more canny/focused on the money, and do more work per hour.

Sound familiar?