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Do Women Earn Less Even as Social Entrepreneurs?

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  • Estrin, Saul

    () (London School of Economics)

  • Stephan, Ute

    () (Aston University)

  • Vujic, Suncica

    () (University of Antwerp)

Abstract

Based upon unique survey data collected using respondent driven sampling methods, we investigate whether there is a gender pay gap among social entrepreneurs in the UK. We find that women as social entrepreneurs earn 29% less than their male colleagues, above the average UK gender pay gap of 19%. We estimate the adjusted pay gap to be about 23% after controlling for a range of demographic, human capital and job characteristics, as well as personal preferences and values. These differences are hard to explain by discrimination since these CEOs set their own pay. Income may not be the only aim in an entrepreneurial career, so we also look at job satisfaction to proxy for non-monetary returns. We find female social entrepreneurs to be more satisfied with their job as a CEO of a social enterprise than their male counterparts. This result holds even when we control for the salary generated through the social enterprise. Our results extend research in labour economics on the gender pay gap as well as entrepreneurship research on women's entrepreneurship to the novel context of social enterprise. It provides the first evidence for a "contented female social entrepreneur" paradox.

Suggested Citation

  • Estrin, Saul & Stephan, Ute & Vujic, Suncica, 2014. "Do Women Earn Less Even as Social Entrepreneurs?," IZA Discussion Papers 8650, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8650
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    Cited by:

    1. Damiani, Mirella & Ricci, Andrea, 2015. "Gender earnings differentials and pay structure of Italian family managers," MPRA Paper 61429, University Library of Munich, Germany.

    More about this item

    Keywords

    social entrepreneur; gender pay gap; social enterprise; earnings; job satisfaction;

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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