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Competing with confidence: The ticket to labor market success for college-educated women

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  • Kamas, Linda
  • Preston, Anne

Abstract

This study examines whether the female earnings gap results from gender differences in preferences for competition and confidence. We use laboratory experiments on college seniors to measure tastes for competition and confidence and then track these subjects’ labor market experiences in the early years after college. Women's compensation is positively correlated with preferences for competition coupled with confidence while men's compensation is not. Women who exhibit a taste to compete and are confident about their performance earn substantially more than other women and do not earn less than men. Further, enjoying competition or being confident alone is insufficient to raise compensation. Half of this female earnings’ effect is explained by college major and labor market controls, but even controlling for these characteristics, a higher taste for competition for the most confident women results in more than a 7% increase in compensation.

Suggested Citation

  • Kamas, Linda & Preston, Anne, 2018. "Competing with confidence: The ticket to labor market success for college-educated women," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 231-252.
    • Handle: RePEc:eee:jeborg:v:155:y:2018:i:c:p:231-252
    DOI: 10.1016/j.jebo.2018.08.025
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    Cited by:

    1. Jiadong Gu & Peter Norman, 2020. "A Search Model of Statistical Discrimination," Papers 2004.06645, arXiv.org, revised Apr 2020.
    2. Catherine Eckel & Lata Gangadharan & Philip J. Grossman & Nina Xue, 2021. "The gender leadership gap: insights from experiments," Chapters, in: Ananish Chaudhuri (ed.), A Research Agenda for Experimental Economics, chapter 7, pages 137-162, Edward Elgar Publishing.
    3. Non, Arjan & Rohde, Ingrid & de Grip, Andries & Dohmen, Thomas, 2022. "Mission of the company, prosocial attitudes and job preferences: A discrete choice experiment," Labour Economics, Elsevier, vol. 74(C).
    4. Fallucchi, Francesco & Nosenzo, Daniele & Reuben, Ernesto, 2020. "Measuring preferences for competition with experimentally-validated survey questions," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 402-423.
    5. Buser, Thomas & van den Assem, Martijn J. & van Dolder, Dennie, 2023. "Gender and willingness to compete for high stakes," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 350-370.
    6. Nicolas Fremeaux & Paul Maarek, 2023. "Less but better? The influence of gender on political activity," Working Papers hal-04039563, HAL.
    7. Hoyer, Britta & van Huizen, Thomas & Keijzer, Linda & Rezaei, Sarah & Rosenkranz, Stephanie & Westbrock, Bastian, 2020. "Gender, competitiveness, and task difficulty: Evidence from the field," Labour Economics, Elsevier, vol. 64(C).
    8. Oriana Bandiera & Nidhi Parekh & Barbara Petrongolo & Michelle Rao, 2022. "Men are from Mars, and Women Too: A Bayesian Meta‐analysis of Overconfidence Experiments," Economica, London School of Economics and Political Science, vol. 89(S1), pages 38-70, June.
    9. Lina Lozano & Ernesto Reuben, 2022. "Measuring Preferences for Competition," Working Papers 20220078, New York University Abu Dhabi, Department of Social Science, revised Aug 2022.
    10. Matti Keloharju & Samuli Knüpfer & Joacim Tåg, 2022. "What prevents women from reaching the top?," Financial Management, Financial Management Association International, vol. 51(3), pages 711-738, September.
    11. Maitra, Pushkar & Neelim, Ananta & Tran, Chau, 2021. "The role of risk and negotiation in explaining the gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 1-27.
    12. Bernd Frick & Clarissa Laura Maria Spiess Bru & Daniel Kaimann, 2023. "Are Women (Really) More Lenient? Gender Differences in Expert Evaluations," Working Papers Dissertations 106, Paderborn University, Faculty of Business Administration and Economics.
    13. Balafoutas, Loukas & Fornwagner, Helena & Grosskopf, Brit, 2023. "Predictably competitive? What faces can tell us about competitive behavior," Games and Economic Behavior, Elsevier, vol. 142(C), pages 931-940.
    14. Linda Kamas & Anne Preston, 2020. "Does Empathy Pay? Evidence on Empathy and Salaries of Recent College Graduates," Journal of Labor Research, Springer, vol. 41(1), pages 169-188, June.
    15. Klinowski, David, 2019. "Selection into self-improvement and competition pay: Gender, stereotypes, and earnings volatility," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 128-146.
    16. Almås, Ingvild & Berge, Lars Ivar & Bjorvatn, Kjetil & Somville, Vincent & Tungodden, Bertil, 2020. "Adverse selection into competition: Evidence from a large-scale field experiment in Tanzania," Discussion Paper Series in Economics 19/2020, Norwegian School of Economics, Department of Economics.

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    More about this item

    Keywords

    Wage gap; Gender; Experiment; Compete; Confidence;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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