Why do women earn less than men in the gig economy?

Women are earning less money than their male counterparts in the gig economy, according to a new study released by the Victoria government. The Gendered Dimensions of Digital Platform Work report revealed that women are earning between 10% and 37% lower than men in gig-economy roles, where on average, men earn $2.67 per hour more than women.

The wage gap is just one of the findings of the report that was released by Women Minister Gabrielle Williams and Industrial Relations Minister Tim Pallas. It was also produced by a Queensland University of Technology research team.

"The pay gap between men and women remains an issue across almost every sector, and the gig economy is no different," said Williams.

According to the report, the gig economy can also "both produce and exacerbate existing gender inequalities in work."

It said that some gig economy platforms provide the option for clients to filter worker profiles by gender, which the government said "may enable discrimination."

The government also attributed its statement to other research findings, where men are more likely to perform platform work that involves software development and technology, transport and food delivery, and skilled trade. Women, on the other hand, are found to be more likely to participate in jobs related to clerical and data entry, sales and marketing support, writing and translation, and care work.

"The gig economy can be a winner for workers, but for too many people – including many women – platform work can fail them on the test of fairness," said Pallas in a statement.

According to the government, women are joining platform work because their "desire for flexibility," which the study found is linked to scheduling hours around unpaid care responsibility.

"Gig economy companies must do more to address the drivers of gender inequality in the workplace," said Williams.

Read more: Victoria urges employers to review new labour-hire obligations

Meanwhile, Pallas said the Victoria government is also doing its part to stamp out wage inequality.

"We're working to improve conditions in Victoria," he said. 

The Labour Government previously commissioned and accepted the recommendations of the Inquiry into the Victorian On-Demand Workforce.

The recommendations pushed for the development of standards on fair conditions and pay consultation about work status and arrangements consideration of parties' bargaining power, fair and transparent independent dispute resolution, worker representation (including the ability to seek better work arrangements), and safety.