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Psychological bias and gender wage gap

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  • Palomino, Frédéric
  • Peyrache, Eloïc-Anil

Abstract

Basing our work on the literature on psychology that highlights differences in confidence levels between men and women, we provide a rationale for the simultaneous existence of the two dimensions of the gender wage gap: (i) on average, men earn more than women and (ii) the difference in wages depends on the gender structure. We also argue that although an equal compensation policy does not eliminate the gender wage gap, it nonetheless increases social welfare. Finally, endogenizing the choice of task by agents, we show how women, in a vast majority, can self-select on low paying jobs.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 76 (2010)
Issue (Month): 3 (December)
Pages: 563-573

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Handle: RePEc:eee:jeborg:v:76:y:2010:i:3:p:563-573

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Bias Gender Optimal contract Wage gap;

References

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  18. Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance In Competitive Environments: Gender Differences," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 1049-1074, August.
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