Gender Interactions in Wage Bargaining: Evidence from an Online Field Experiment

51 Pages Posted: 23 Oct 2017 Last revised: 24 Oct 2017

Hernan Galperin

University of Southern California; CONICET

Guillermo Cruces

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS); IZA

Catrihel Greppi

Universidad Nacional de La Plata

Date Written: September 20, 2017

Abstract

This paper explores how worker-employer gender interactions affect wage negotiations in a contract labor setting. More specifically, we ask whether male and female job seekers competing for contracts in an online labor market adjust their bargaining strategies and reservation prices depending on the inferred gender of the employer. We design a randomized-block experiment in which we invite a random sample of male/female freelancers to apply for a job contract which is otherwise identical except for the gender of the employer and the bargaining setting. We find a “male employer effect” whereby job seekers (regardless of gender) bid 22% lower to our male employer. We attribute this finding to stereotypes regarding women’s ability and willingness to negotiate on price. We discuss implications for observed gender gaps in wages, career paths and entrepreneurial activity.

Keywords: Gender, Discrimination, Field Experiment, Online Labor

Suggested Citation

Galperin, Hernan and Cruces, Guillermo and Greppi, Catrihel, Gender Interactions in Wage Bargaining: Evidence from an Online Field Experiment (September 20, 2017). Available at SSRN: https://ssrn.com/abstract=3056508 or http://dx.doi.org/10.2139/ssrn.3056508

Hernan Galperin (Contact Author)

University of Southern California ( email )

Los Angeles, CA 90089
United States

CONICET ( email )

Avda. Rivadavia 1917
Buenos Aires, Federal Capital C1033AAJ
Argentina

Guillermo Cruces

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) ( email )

Centro de Estudios Distributivos, Laborales y
Sociales, Calle 6 e/47 y 48
La Plata, Provincia de Buenos Aires 1900
Argentina

HOME PAGE: http://cedlas.econo.unlp.edu.ar

IZA

P.O. Box 7240
Bonn, D-53072
Germany

Catrihel Greppi

Universidad Nacional de La Plata ( email )

7 Nº 776
Buenos Aires, BA 1900
Argentina

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