Do women under-pay themselves at non-profits?

(written by lawrence krubner, however indented passages are often quotes). You can contact lawrence at: lawrence@krubner.com, or follow me on Twitter.

Apparently there is a pay gap among the genders, even at non-profits, and even when the leadership is female:

That women earn less money than men is well known. But research has revealed that even when women start their own not-for-profit “social enterprises” they pay themselves less than their male peers.

The study, comprising 159 social entrepreneurs in the UK, showed an adjusted pay gap between the sexes of about 23 per cent. That is similar to the global difference in earnings between men and women. The International Labour Organisation estimates that to be about 23 per cent – meaning that, for every £1 men earn, women earn 77p.

…The new research, by academics at London Business School, Aston University and the University of Antwerp, mirrors previous findings on the salaries earned by male and female founders of for-profit companies. A report on Goldman Sachs’ 10,000 Small Businesses programme, noted that female participants, on average, paid themselves 80 per cent of the salary of male participants.

….One hypothesis suggested in the article is that the female entrepreneurs prioritize autonomy over higher pay and end up happier in these jobs, relative to their alternatives, than do the male entrepreneurs.

Post external references

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    http://marginalrevolution.com/marginalrevolution/2014/11/women-earn-less-than-men-even-when-they-set-the-pay.html
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