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Over the past five years, freelancing has transitioned from a commonplace method of earning income in the digital era to an integral component of what is now dubbed “the new normal.”
In the United States, the population of full-time freelancers surged by 91%, while occasional freelancers saw a staggering increase of 132% between 2020 and 2023. Presently, approximately 72.1 million Americans—comprising roughly 45% of the workforce—engage in freelance work either part-time or as their primary occupation, as reported by MBO Partners. Many individuals have reshaped their career trajectories in response to shifting circumstances or expectations brought on by the pandemic, while others have seamlessly integrated into a landscape where freelancing represents a natural evolution.
Margaret Lilani, Vice President of Talent Solutions at Upwork, notes that younger professionals, having grown up as digital natives immersed in the internet and social media, are forging novel pathways for career advancement beyond the confines of traditional corporate structures. She explains that factors such as uncertainty surrounding higher education, internships, and the job market are aligning with a broader societal shift in how individuals perceive work.
Regrettably, alongside its normalization, freelancing has also seen the exacerbation of wage disparities. In conventional full-time employment, women in the U.S. typically earn 84 cents for every dollar earned by men. However, a recent study reveals that, on average, female freelancers charge only 79 cents for every dollar charged by their male counterparts. Our analysis encompassed advertised rates spanning all U.S. states and major freelancing sectors, providing insight into the extent of the gender pay gap among freelancers in the United States.
On average, male freelancers charge 26.4% more than female freelancers.
Wyoming exhibits the largest gap between male and female freelancer rates, with men charging $55.89/hour more than women.
Delaware stands out as the only state where female freelancers charge more than males, surpassing them by $13.83/hour.
Legal Writing, within the Writing category, shows the most significant disparity, with men charging $107.38/hour, or 145.4% more than women.
Freelance Gender Pay Gap Narrowly Below Full-Time Workers
In the U.S., male freelancers command an average rate of $75.44 per hour, marking a 26.4% difference from the $59.70 hourly rate for females. Notably, this gap varies across categories, with Legal services showing the widest disparity, and Translation displaying the least.
The legal sector’s disparity mirrors broader trends, where women remain underrepresented, potentially influencing hiring practices and rate negotiations.
In the analysis of eleven categories, the OnDeck team observed that women charge higher rates than men in three of them, although the difference in rates is generally smaller compared to the seven categories where men charge more. Interestingly, these categories where women charge higher rates also happen to be among the lowest paid in the study, except for translation.
Among these categories, Admin Support stands out as one where women hold a significant advantage, charging $57.95/hour on average — $8.28 more than the $49.67 set by men. The prevalence of women in administrative roles, occupying between 93% and 97% of permanent secretarial and administrative assistant positions throughout much of the 21st century, might reinforce the perception that administrative tasks align more closely with female freelancers’ skill sets. However, it’s important to note that despite this advantage, most permanent administrative staff earn less than the average U.S. worker, making admin support one of the lower-paid categories in our study.
What’s the Gender Pay Gap among Freelancers by U.S. State?
Across all surveyed categories, male freelancers in all but one state typically charge higher rates than their female counterparts. In 41 U.S. states, men charge over $10/hour more on average than women. The most significant discrepancy occurs in Wyoming, where the average male freelancer charges $86.09, a staggering $55.89 or 185% more than the average female rate of $30.20/hour.
Wyoming consistently ranks among the states with the most pronounced pay gap. A 2022 report from the Wyoming Women’s Foundation highlighted that the average working woman in the state loses enough money annually because of the gender wage gap to afford 108 additional weeks of food, 12 more months of mortgage and utilities payments, 21 extra months of rent, or 8,402 additional gallons of gas.
In contrast, Delaware stands out as the sole state where female freelancers earn more, averaging $66.33 compared to their male counterparts’ $52.50. Despite having a slightly below-average pay gap, with women making 86 cents for every dollar earned by men in conventional roles, the findings suggest a near reversal when considering freelancer rates. In Delaware, men charge 79 cents for every dollar charged by women.
Career Coaching Dominates the Gender Pay Gap in Accounting & Consulting
The most pronounced gender pay gap among freelancers in the accounting and consulting field occurs in Career Coaching, where men charge $136.67 per hour, nearly double the average rate of $71.27/hour charged by women.
Research indicates that 5—11% of the gender gap in prominent professions can be attributed to male overconfidence. Brooke Taylor explains, “The overconfidence gap refers to the difference between individuals’ self-perceived abilities and their actual performance. As a career coach, I assist conscientious corporate women in truly embracing their success. It’s common for women with extensive experience and impressive achievements ‘on paper’ to doubt their worthiness or potential for further advancement.”
Within this category, the OnDeck team observed only two instances where women charge higher rates, albeit by a marginal amount, in Training & Development and Recruiting & Talent Sourcing. Notably, male Financial Management/CFO freelancers command a mere $5.70/hour more than their female counterparts, despite this role being the second-highest paid within our Accounting & Consulting category. The study generally indicates that higher-paying roles exhibit wider gender pay gaps compared to lower-paying positions.
Women in Brand Strategy Rebalance the Sales & Marketing Freelancer Pay Disparity
In the realm of sales and marketing freelancing, female Marketing Automation and Brand Strategy specialists command higher rates compared to their male counterparts. Although the difference in marketing automation is marginal at just 70 cents, Brand Strategy leans significantly in favor of female freelancers, who charge an average of $150.42 — a notable $36.00 more than men’s $114.42.
This trend could be linked to the fact that women influence 70%-80% of all consumer purchases, underlining the perceived value of female perspectives in branding strategies.
Moreover, collective bargaining efforts by female marketing freelancers likely contribute to this shift. Holly Wasson, Chief Community & Marketing Officer at the marketing freelancer collective We Are Rosie, emphasizes their commitment to gender pay equity. They maintain a 99% track record of pay equity between male and female freelancers by basing compensation on the role rather than the gender of the freelancer.
Photography and Videography: Divergent Pay Trends in the Design & Creative Freelance Sector
Within the Design & Creative category, the pay gap between male and female freelancers is relatively modest. Local Photographers, for instance, exhibit one of the lowest disparities, with men charging $25.09/hour more than women. However, this category also reveals a noteworthy trend: while ten out of 24 roles favor women in terms of pay, the most significant gap emerges in Videography, where women charge $47.42 more than men.
This disparity may stem from entrenched perceptions regarding the gender association with certain artistic mediums. Stills photography, being a traditional art form, often carries the misconception that it is primarily a male-dominated field.
Gender Disparities in IT & Development: Male Network Administrators Charge 3x More
In the analysis of 17 roles within IT & Development, male freelancers out-earn their female counterparts in ten roles. The gap is particularly glaring in Network Administration, where men charge nearly three times as much as women, with rates at $108.50 compared to $37.50. With only 12.9% of network administrators being women, the male-dominated nature of this space not only affects its profitability but also undermines equitable expectations.
A study highlights the challenges of managing gender identity in the sysadmin workplace, emphasizing the need for female administrators to excel and go beyond expectations to overcome biases. Additionally, women in this field often undertake extra responsibilities due to gender considerations and foster a supportive community in the workplace.
Among all roles examined in our study, male Legal Writing freelancers demonstrate the most significant pay gap, charging an average of $107.38 more than their female counterparts. This pronounced disparity underscores the enduring issue of unequal pay within the legal sphere, where legal writing, despite its higher female representation, remains plagued by inequities. Legal writing professors often receive lower compensation compared to their peers in other legal teaching positions, partly due to misconceptions surrounding the complexity and value of writing within the field.
The pay gap in legal writing surpasses that of any other writing role by more than threefold. Despite this disparity, the findings reveal that over half of the writing roles examined have pay gaps of less than $10. Notably, women charge higher rates than men in five out of 22 writing categories, with Email, Phone & Chat Support and Resume & Cover Letter Writing showcasing the most significant difference. In these instances, men charge $65.26, while women charge $11.92 more at $77.19.
Methodology
To explore the wage disparity between male and female freelancers in the United States, the OnDeck team analyzed the hourly rates charged by 9,078 freelancers based in the US who have completed over 100 work hours on Upwork.
The team proceeded by computing the mean hourly rates (in USD) for freelancers across all sectors, as well as for 11 specific sectors (Legal, Accounting & Consulting, Data Science & Analytics, Engineering & Architecture, Sales & Marketing, Writing, IT and Development, Translation, Design & Creative, Customer Service, Admin Support), before determining the variance in hourly rates between male and female freelancers.
Identification of male and female freelancers was carried out using Gender-API.com. Only freelancers with a name-to-gender classification accuracy exceeding 50% were included in the analysis.
The data for this study was collected in February 2024.
Pricing Guidelines for Freelancers
Setting your rates as a freelancer requires careful consideration, especially when starting. Use these guidelines to ensure you receive fair compensation without pricing yourself out of the market.
✓ DO research industry norms: Explore platforms like Upwork, Glassdoor, and PayScale to understand typical rates. Compare your experience and skills to those in your field when determining your rate.
⛌ DON‘T undervalue your work: While it’s essential to be competitive, ensure your rates cover your costs and allow you to make a living. Consider the value of your services and what it takes to deliver them effectively.
✓ DO factor in your experience and expertise: Base your rates on objective factors such as your education, skills, and experience rather than solely on confidence levels.
⛌ DON’T neglect rate updates: As you gain experience and success, regularly review and adjust your rates to reflect your growing expertise. This demonstrates your value to clients and ensures fair compensation.
✓ DO be transparent and flexible: Clearly communicate your rates to clients and be open to negotiation. Avoid underpricing yourself, and consider lower rates for long-term or bulk projects that offer additional benefits.
⛌ DON‘T shy away from discussing details: If certain tasks require more effort or expertise, explain this to clients and adjust your rates accordingly. Retain the option to revise pricing after a trial period if necessary.
It’s crucial to note that gender should not influence your pricing. Despite strides towards pay equality, women still face disparities in freelance and permanent roles. Ensure you value your skills appropriately, avoiding underestimation due to societal biases. Let’s strive for a freelancing landscape where fair compensation reflects true value, fostering an equitable “new normal” for all freelancers.
