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Advanced Concepts

Algorithmic wage discrimination

Software varying people's pay using individual information in ways that may disadvantage workers.

Example

A platform varies workers' pay based on predictions about what they will accept.

Why people use it

It draws attention to pay differences shaped by information about individual workers.

What you'll hear

“Why are workers offered different pay for similar jobs?”

What this means for you

Ask which information affects pay and how workers can challenge mistakes.

Can you control it?

No

No direct control. This describes a wider issue, concept or result rather than something you can simply switch on or off in a tool.

Common questions

Is all algorithmic pay variation unlawful discrimination?
Not automatically. Legal meaning and evidence depend on the circumstances.
Can predicted willingness to accept affect an offer?
Some systems may use such predictions, which raises questions about how pay is determined.
Does a worker see all the information behind the offer?
Not necessarily. The service may reveal little about the factors used.

Related terms

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