Do risk preferences account for 1.4 percentage points of the gender pay gap?

Vincent Geloso's avatarNotes On Liberty

A few days ago, this study of gender pay differences for Uber drivers came out. The key finding, that women earned 7% less than men, was stunning because Uber uses a gender-blind algorithm. The figure below was the most interesting one from the study as it summarized the differences in pay quite well.

DataUber

To explain this, the authors highlight a few explanations borne out by the data: men drive faster allowing them to have more clients; men have spent more time working for Uber and have more experience that may be unobserved; choices of where and when to drive matters. It is this latter point that I find fascinating because it speaks to an issue that I keep underlining regarding pay gaps when I teach.

For reasons that may be sociological or biological (I am agnostic on that), men tend to occupy jobs that have high rates of occupational mortality…

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