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Here is the money quote: > We can explain the entire gap with three factors. First, through the logic of compensating differentials, hourly earnings on Uber va
by konschubert 9y ago
Here is the money quote:
> We can explain the entire gap with three factors. First, through the logic of
compensating differentials, hourly earnings on Uber vary predictably by location and time of week,
and men tend to drive in more lucrative locations. The second factor is work experience. Even
in the relatively simple production of a passenger’s ride, past experience is valuable for drivers. A
driver with more than 2,500 lifetime trips completed earns 14% more per hour than a driver who
has completed fewer than 100 trips in her time on the platform, in part because she learn where
to drive, when to drive, and how to strategically cancel and accept trips. Male drivers accumulate
more experience than women by driving more each week and being less likely to stop driving with
Uber. Because of these returns to experience and because the typical male Uber driver has more
experience than the typical female—putting them higher on the learning curve—men earn more
money per hour.
The residual gender earnings gap that persists after controlling for these two factors can be
explained by a single variable: average driving speed.