Soft Negotiators or Modest Builders? Why Women Earn Lower Real Estate Returns *

80 Pages Posted: 28 Oct 2022 Last revised: 28 Mar 2023

See all articles by Laurent Bach

Laurent Bach

ESSEC Business School - Finance Department; Swedish House of Finance

Anastasia Girshina

Stockholm School of Economics; Swedish House of Finance at Stockholm School of Economics

Paolo Sodini

Stockholm School of Economics - Department of Finance; Swedish House of Finance

Date Written: October 12, 2021

Abstract

Using repeat-sales data on apartments in Sweden, we estimate the gender gap in real estate returns. We find that transactions executed by women earn 2 percentage points (pp) lower returns compared to those executed by men, which narrows down to less than 0.5 pp once renovations are taken into account. This residual gender gap is fully explained by the fact that women are less likely to select into real estate-relevant occupations and are older on average. We cannot confirm that the gender gap stems from men's higher ability to either time the market or negotiate aggressively.

Keywords: gender gap, real estate, returns

Suggested Citation

Bach, Laurent and Girshina, Anastasia and Sodini, Paolo, Soft Negotiators or Modest Builders? Why Women Earn Lower Real Estate Returns * (October 12, 2021). Proceedings of the EUROFIDAI-ESSEC Paris December Finance Meeting 2022, Swedish House of Finance Research Paper No. 23-04, Available at SSRN: https://ssrn.com/abstract=4260817 or http://dx.doi.org/10.2139/ssrn.4260817

Laurent Bach (Contact Author)

ESSEC Business School - Finance Department ( email )

Avenue Bernard Hirsch
BP 105 Cergy Cedex, 95021
France

Swedish House of Finance ( email )

Drottninggatan 98
111 60 Stockholm
Sweden

Anastasia Girshina

Stockholm School of Economics ( email )

PO Box 6501
Stockholm, 11383
Sweden

Swedish House of Finance at Stockholm School of Economics ( email )

Drottninggatan 98
111 60 Stockholm
Sweden

Paolo Sodini

Stockholm School of Economics - Department of Finance ( email )

Sveavagen 65, Box 6501
SE-113 83 Stockholm
Sweden
46 8 7369165 (Phone)
46 8 312327 (Fax)

HOME PAGE: http://www.hhs.se/secfi/People/Faculty/Finpso/finp

Swedish House of Finance ( email )

Drottninggatan 98
111 60 Stockholm
Sweden

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