An Experimental Investigation of Gender Differences in Wage Negotiations

29 Pages Posted: 22 Oct 2012

Date Written: October 14, 2012

Abstract

There is a consensus that there is a gap between male and female wages. This paper investigates whether this is due to a negotiation gap, and what mechanisms can alleviate it, by examining whether females ask for less in a controlled bargaining setting that accurately models relevant aspects of negotiating over a starting salary. The results are stark: females ask for less, and earn less than males. Providing social information eliminates the negotiation gap, and more importantly, the wage gap.

Keywords: negotiations, gender differences, social comparisons, experimental bargaining, ultimatum game

JEL Classification: C91, C72, J31

Suggested Citation

Rigdon, Mary, An Experimental Investigation of Gender Differences in Wage Negotiations (October 14, 2012). Available at SSRN: https://ssrn.com/abstract=2165253 or http://dx.doi.org/10.2139/ssrn.2165253

Mary Rigdon (Contact Author)

Rutgers University ( email )

Center for Cognitive Science
152 Frelinghuysen Rd., A103
Piscataway, NJ US 08854-8020
United States

HOME PAGE: http://maryrigdon.org

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