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Do women earn less even as social entrepreneurs?

Estrin, Saul and Stephan, Ute and Vujić, Sunčica (2014) Do women earn less even as social entrepreneurs? CEP Discussion Papers, CEPDP1313. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Identification Number: CEPDP1313

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 nonmonetary 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.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2014 The Authors
Subjects: H Social Sciences > HN Social history and conditions. Social problems. Social reform
H Social Sciences > HQ The family. Marriage. Woman
JEL classification: J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J28 - Safety; Accidents; Industrial Health; Job Satisfaction; Related Public Policy
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J - Labor and Demographic Economics > J7 - Labor Discrimination > J71 - Discrimination
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L32 - Public Enterprises
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Series: Working Papers > CEP Discussion Papers
Date Deposited: 05 Jan 2015 17:16
Last Modified: 05 Jan 2015 17:16
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/60606

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