According to a recent Bankrate survey, over a third of Americans (36%) have a side hustle, and they are earning significant additional income. On average, side hustlers are making an extra $891 per month.
The survey found that both men and women are engaging in side hustles, with 38% of men and 33% of women having one. However, there appears to be a gender pay gap in side hustles, with men earning an average of $1,034 per month compared to women earning $735 per month.
Experts attribute this gap to a few key factors:
1. Occupational segregation: The most common side hustles for women were child care and crafts, which tend to be lower-paying fields compared to the more lucrative side hustles men engage in, such as landscaping and home repair.
2. Household responsibilities: Women are more likely to take on housework and childcare duties, which can limit the time and energy they have available for side hustles.
3. Internalized notions of worth: Studies show that even when controlling for factors like age, education, and occupation, women tend to undervalue their own work and set lower rates for themselves compared to men.
To address this gap, experts suggest that women in side hustles should not undervalue their work, set clear goals to raise their rates, leverage technology to increase their earning potential and consider higher-paying professional services side gigs.
Ultimately, the gender pay gap in side hustles reflects broader systemic issues that require more than just individual action. Addressing occupational segregation, household dynamics, and societal biases will be crucial in closing this gap.