Pantera Research: There is a wage gap in the crypto industry, with women earning 15% more than men
In the entertainment industry, producers and directors are the only other fields where women's income is higher than men's.Original Title: “Crypto's Reverse Wage Gap”
Authors: Matt Stephenson, Ally Zach, Nick Zurick
Compiled by: Deep Tide TechFlow
We report on Pantera Capital's cross-sectional survey results regarding compensation in the blockchain industry. The survey included 502 respondents from the general population, making it the largest of its kind to date. Our analysis found that the gender wage gap among crypto industry employees is the opposite of the general trend—women earn more than men in our sample.
Gender Wage Gap
Methodology
This study employs a two-phase research design to address potential issues of multiple hypothesis testing and p-hacking. Preliminary observations from the previous year's survey were treated as a pilot study, informing the current research.
Pilot Study (Previous Year)
Exploratory data analysis from the previous survey observed a gender wage gap, but it was not reported as a finding due to the risk of false positives arising from multiple comparisons. This approach aligns with best practices for avoiding Type I errors and publication bias. Based on pilot data, we conducted a priori power analysis to determine the sample size needed to detect hypothesized effects in this year's survey. These results are presented here.
Confirmatory Analysis:
The current study serves as a confirmatory test. This approach allows for more reliable p-value interpretation, as it is not affected by multiple comparisons or post hoc hypotheses.
By adopting this two-phase method, we avoided the need for multiple comparison corrections, such as the Bonferroni method, which is appropriate in single studies testing multiple hypotheses. Instead, our approach is consistent with the concept of "out-of-sample validation" in predictive modeling, enhancing the robustness of our findings.
This methodological framework strengthens the validity of our results and provides a model for rigorous hypothesis testing in exploratory fields like cryptocurrency industry research.
Survey Method and Results
Data collection occurred from June 4 to July 20, 2024, via an online survey questionnaire disseminated through professional networks (LinkedIn), social media platforms (X), newsletters, and emails. The sample consisted of 502 self-identified male or female respondents from the U.S. Only full-time employees were included in the analysis.
Analysis of median base salaries showed that women in cryptocurrency companies earn 14.67% more than men. The median base salary for women was $172,000, while for men it was $150,000, meaning women earn $1.15 for every dollar earned by men.
This difference is statistically significant (Mann-Whitney U test, p < 0.05), contrasting with general labor market trends where women typically earn less than men. Through regression analysis, we also observed that the average difference favors women (p < 0.05).
This result challenges the narrative of the gender wage gap, where in non-crypto companies, women typically earn only $0.84 for every dollar earned by men.
Further Analysis
A closer examination of occupational groups reveals that the entertainment industry’s producers and directors are the only other area where women earn more than men. While compensation in other high-degree professions is nearly equal, the reality is that even in the Web2 tech industry, men's earnings still significantly exceed those of women.
This reverse wage gap may be partially attributed to differences in experience levels between genders. Women in the crypto industry tend to have more experience, often occupying mid to senior-level positions with over five years of work experience in their current roles. In contrast, more men occupy entry-level positions as they transition into the crypto industry.
This "reverse" wage gap may indicate that the crypto industry offers better opportunities for women compared to traditional fields.
It is important to recognize that women in this industry may still face barriers and challenges. However, the relatively equitable compensation in the crypto industry suggests that gender equality is progressing in a positive direction, marking a trend of advancement in this emerging field.
