Gender differences in pre-career salary estimations. A classroom experiment with job offers based on the pay transparency reform in Austria.

27 Pages Posted: 22 Mar 2021

See all articles by Julia Brandl

Julia Brandl

University of Innsbruck

Levent Yilmaz

Turkish-German University

Bianca Schönherr

affiliation not provided to SSRN

Date Written: January 1, 2021

Abstract

This paper examines gender differences in estimating the salaries from job offers after the pay transparency reform in Austria, which aims to reduce the gender pay gap by mandating employers to disclose the minimum salary and negotiation options in their job offers. We address common salary offers in the pharmaceutical industry, where market salaries are substantially higher than the minimum salary. An experiment is conducted with 385 graduate students who estimate the negotiable salary for six salary offers of a chosen job. Our results show that, when salary offers are based on minimum salaries, initial gender differences in estimates remain, irrespective of whether the salary is negotiable or not. When a salary-range is shown, however, gender differences disappear completely. The results imply that, reducing the gender gap in salary estimates in asymmetric labor markets necessitates employers to include not only negotiation options, but also the salary range in their job offers.

Keywords: Gender wage gap, Salary estimations, Transparency legislation, Job offers, Classroom experiment, Anchoring

JEL Classification: C90, J16, J33, M50

Suggested Citation

Brandl, Julia and Yilmaz, Levent and Schönherr, Bianca, Gender differences in pre-career salary estimations. A classroom experiment with job offers based on the pay transparency reform in Austria. (January 1, 2021). Available at SSRN: https://ssrn.com/abstract=3796934 or http://dx.doi.org/10.2139/ssrn.3796934

Julia Brandl

University of Innsbruck ( email )

Universitaetsstrasse 15
Innsbruck, 6020
Austria

HOME PAGE: http://https://www.uibk.ac.at/iol/hrm/

Levent Yilmaz (Contact Author)

Turkish-German University ( email )

Sahinkaya Cad. 106
Istanbul, Beykoz 34820
Turkey

Bianca Schönherr

affiliation not provided to SSRN

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