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The $10,000 Salary Gap for Women in Startups

February 19th, 2009 @ 5:54 am

1 Comment

Categories: Research

Tags: Women, Gap, Gender And Diversity, Human Resources, Sean Silverthorne

Study after study has demonstrated salary gaps for female executives versus their male colleagues, especially in large companies. Now new research by Harvard Business School professor Noam Wasserman demonstrates that the pay gaps persist in startups, too — although less so.

Looking at data on 2,200 executives from almost 480 private IT and life sciences ventures, Wasserman found that overall, men made $10,200 more than women. Women had their best chance of equal pay in the states of California and Massachusetts, and in early-stage ventures.

That number actually looks good compared to the 20 percent or more in gender-based pay inequalities found in larger organizations. Notes Wasserman: “Small, private ventures may indeed be a good place to escape the factors that cause wide gender gaps in large companies.”

Read his post for more details. He encourages readers to offer their own opinions and analysis of  the results, and is especially interested in why these gaps exist. Here’s what one of his readers offered:

“Regarding the growing gender gap as companies mature, the obvious answer would be that early stage companies are meritocracies whereas mature companies are bureaucracies that reward factors other than performance which are biased against women.”

From our female readers, what has been your experience with compensation in startups?

 
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    Joyous_LadyJ

    02/20/09 | Report as spam

    RE: The $10,000 Salary Gap for Women in Startups

    Women need to read the book "Women Don't Ask". Much of the difference is because women do not negotiate as well as they could upon hiring and when other opportunities present themselves.

    Learning to negotiate better would show that many times the pay difference is not discriminatory but because the men tend to counter employment offers whereas women (even ones who know they should negotiate) seem happy to be "wanted" and are fearful negotiating might result in the offer being taken off the table.

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Blogger Profiles

  • Blogger Thumbnail Sean Silverthorne Sean Silverthorne is the editor of HBS Working Knowledge, which provides a first look at the research and ideas of Harvard Business School faculty. Working Knowledge, which won a Webby award in 2007, currently records 4 million unique visitors a year. He has been with HBS since 2001. Silverthorne has 28 years experience in print and online journalism. Before arriving at HBS, he was a senior editor at CNet and Executive Editor of ZDNet News.... more »

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