Gender Gap in Pay Persists in Social Enterprise--but women are happy!

Gender Gap in Pay Persists in Social Enterprise--but women are happy!

A study from the UK shows that the gender gap in pay persists even in social enterprises, but that women social entrepreneurs are nonetheless happier than their male counterparts.  The Nonprofiteer wonders if this means that women are particularly stupid, or if we’ve just learned to be content with the crumbs we get.

We find that even as social entrepreneurs, women earn 29 percent less annual salary (27 percent hourly wages) than their male colleagues. This is a greater unadjusted gap than the UK average of 20 percent based on hourly wages. Controlling for demographics, human capital, job, social business, personal preference, and values characteristics, we estimate an adjusted pay gap of about 23 percent for the annual salary of social entrepreneurs (20 percent for hourly wages).

At the same time, we show that female social entrepreneurs are more satisfied with their jobs than their male counterparts. This finding holds even when we take into account the lower salary or revenues (as a proxy for the size of the organization) generated through a social enterprise. Our findings, therefore, are consistent with the “paradox of the contented female (social) business owner,” whereby the female social entrepreneur’s job satisfaction is independent of the (lower) salary or revenues generated through the social business.

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    Nonprofiteer

    The Nonprofiteer is Kelly Kleiman, principal of NFP Consulting, which provides Board development, strategic planning and fund-raising services to charities and philanthropies. Through her consulting practice and in her guise as The Nonprofiteer, Kelly has spent the past 25-plus years helping small and mid-sized nonprofits organize themselves better and raise more money. These days she focuses especially on helping them use high-skill volunteers. Kelly is also a lawyer and freelance journalist whose reportage and essays have appeared in the New York Times, Wall Street Journal, Washington Post, Christian Science Monitor and other dailies; in magazines including In These Times and Chicago Philanthropy; in the alternative press; on websites including the Huffington Post; and on the radio, including the BBC and WBEZ Chicago Public Radio. She and her fellow "Dueling Critic" Jonathan Abarbanel present a weekly podcast of their reviews of Chicago theater at DuelingCritics.net. Earlier in her career she was dean of admissions of IIT Chicago-Kent College of Law and Executive Director of the Chicago Children’s Choir, and practiced real estate and zoning law with the firm of Rudnick & Wolfe. Kelly holds undergraduate and law degrees from the University of Chicago. She was a founding Board member of the Association of Consultants to Nonprofits and also served for 5 years on the Board of the Association for Women Journalists–Chicago. She can be reached ("Dear Nonprofiteer . . .") at KellyNFP@yahoo.com.

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