Women in Crypto Earn More Than Men

Pantera Capital recently conducted the largest compensation survey in crypto, and there were 502 overall survey participants. When we got the results, we discovered something surprising: unlike almost every other industry we know, crypto pays women more than men.

This finding is a bright spot for an industry that has struggled with mainstream public perception. At non-crypto companies in the U.S., a woman typically makes 84 cents for every dollar a man makes. In crypto, women earn about 15% more than men based on average base salaries, equivalent to $1.15 for every dollar a man makes.

Looking specifically at occupational groups, the “Producers and Directors” group in the entertainment industry is the only area where women earn more than men. While other advanced professions approach equal pay, the reality is that even in the Web2 technology sector, men earn significantly more than women.

Numerous economic studies have been conducted to identify the factors underlying the non-crypto wage gap. Possible explanations include gender discrimination in hiring, division of labor within the household, and selection into lower-wage sectors. While more research is needed on the underlying factors explaining the inverse wage gap in crypto, our data suggests that experience plays an important role.

Women in crypto tend to be more experienced and are typically in mid-level to senior positions, with more than five years of experience in similar roles, while a larger proportion of men are in entry-level positions.

But even controlling for experience, women earn more than men in crypto. The authors suggest that a plausible explanation consistent with the data is that women in crypto are “lindys.” To be a lindy is to have overcome an obstacle that predicts your future success. This idea implies that women who have overcome obstacles in the crypto industry have unobservable qualities, such as resilience and high competence, that, when combined with their time in the industry, result in higher salaries.

Another theory is that men in crypto are underpaid compared to women. This theory seems less likely because it suggests that there are more women attracted to better pay in crypto, but we do not observe this. We would also expect to see many more early career women seeking higher pay in crypto, but their assets are still minimal, making this theory unsuitable for our data.

Finally, the idea that women are more risk-averse and that cryptocurrency is a risky career is plausible, but it doesn’t quite match the data. Typically, people’s risk tolerance decreases over time, which suggests fewer women with experience in such a volatile field. However, the data does show a significant presence of women with significant experience in the industry, making it unclear why there would be such a significant impact based on experience levels alone.

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The inverted wage gap in the crypto industry could indicate that women are offered better opportunities than traditional fields. While it’s important to acknowledge that women will likely continue to face obstacles in this sector, the relatively fair wages in crypto suggest a potential move toward greater gender equality. This points to a progressive trend in this relatively new field and offers hope for a more balanced future.

Note: The opinions expressed in this column are those of the author and do not reflect the opinions of CoinDesk, Inc. or its owners and affiliates.