Do some women choose to make less than men?
U.S. News - 02/12/2015
As heads of the social enterprises, the females’ and males’ salaries obviously depend on the success of the businesses. Due to this, the researcher proposed that female-owned enterprises may be smaller and designed that way by women according to their inherent preferences for risk aversion and other factors. And, since women factor in business size, growth and profit into their salaries to a greater extent than men, according to Estrin, that also explains the pay disparity.
He notes that these findings are consistent with the paradox of the “contented female business owner,” which was first proposed by Gary Powell and Kimberly Eddleston when they surveyed 201 business owners in the United States. The researchers found that “the female business owners reported that their firms were less successful than rivals’, in terms of traditional measures, such as growth and profit,” as reported by Research Digest. “And yet, the female owners reported being just as satisfied with their business success as the men.”