This data from the US is not an exception but the norm: When trying to make sense of this wage gap, a long list of characteristics — such as gender differences in academic training, and in choice of industry or occupation — are able to explain a substantial fraction. But not all of it. There is no doubt that discrimination plays a role, but there are other factors that deserve attention.
This data from the US is not an exception but the norm: When trying to make sense of this wage gap, a long list of characteristics — such as gender differences in academic training, and in choice of industry or occupation — are able to explain a substantial fraction.
But not all of it. There is no doubt that discrimination plays a role, but there are other factors that deserve attention. Interestingly, the data show that the gender pay gap is higher in these high-skilled positions. So, if highly skilled men and women negotiate differently and reach different outcomes, this would explain part of the gender gap that we still cannot account for. Negotiation and the Gender Divide Such a disparity would certainly contribute to a gender pay gap among this otherwise identical population.
But there is more to the story. Even when men and women both negotiate, their final outcomes can differ. Men tend to be more competitive and less prosocial, which allows them to get higher salaries than women through the negotiation process.
But, in our recent research , we found that gender differences in negotiation are not so general but rather depend crucially on the gender composition of the bargaining table. We reached this conclusion by using data from a TV show.
In that TV show, a contestant was endowed with a certain amount of money. He or she was asked a simple question. This is where the negotiation took place: As in most real-life situations, the TV show offered a setting in which there is a strong bargaining party the contestant and a weak one the responder.
The contestant is able to drop the negotiation at any time to look for another responder, and the contestant also knows the amount of money available to pay. We found that the likelihood of reaching a deal, as well as the number of offers and counteroffers which proxies the degree of conflict during the negotiation , was the same, independent of the gender combination. However, male responders negotiating against female contestants captured more of the pie than any others, getting around 2 per cent more than responders in any other matching.
Meanwhile, female responders to male contestants got around 16 per cent less than responders in any other matching — the penalty faced by women for negotiating against men. But, crucially, this was the case only among those women who negotiated with a man. When comparing women negotiating against other women, they behaved in exactly the same way as men did. One critical aspect of our findings is that gender differences arise only in negotiations between a man and a woman where the woman is in the weak position, but not when the woman is the empowered party.
This highlights the importance not only of gender and gender pairings, but also the relative strength held in the bargaining table. The link between the labour market and the gender pay gap could go as follows: In addition, when they do, they will ask for less, which contributes to increasing the gender pay gap. So, our next step is clear: He is interested in applied microeconomics. She has written for The Economic Journal, among others. She is interested in behavioural and experimental economics.
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HOWTO: Wound | Definition of Wound by Merriam-Webster
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