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.