Are Women Asking for Low Wages? Gender Differences in Wage Bargaining Strategies and Ensuing Bargaining Success
AbstractMen and women’s labor market outcomes differ along pay, promotion and competitiveness. This paper contributes by uncovering results in a related unexplored field using unique data on individual wage bargaining. We find striking gender differences. Women, like men, also bargain, but they submit lower wage bids and are offered lower wages than men. The adjusted gender wage gap is lower with posted-wage jobs than with individual bargaining, although less is ascribable to the term associated with discrimination. Both women and men use self-promoting, or competitive bargaining strategies, but women self-promote at lower levels. Employers reward self-promotion but the larger the self-promotion, the larger is the gender gap in bargaining success. Women therefore lack the incentives to self-promote, which helps to explain the gender disparities.
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Bibliographic InfoPaper provided by Swedish Institute for Social Research in its series Working Paper Series with number 7/2007.
Length: 37 pages
Date of creation: 18 May 2007
Date of revision:
Individual Wage Bargaining; Competitiveness; Bargaining strategies; Self-promoting Bargaining Strategies; Gender Wage Gap; and Discrimination.;
Find related papers by JEL classification:
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-23 (All new papers)
- NEP-BEC-2007-06-23 (Business Economics)
- NEP-CBE-2007-06-23 (Cognitive & Behavioural Economics)
- NEP-CSE-2007-06-23 (Economics of Strategic Management)
- NEP-LAB-2007-06-23 (Labour Economics)
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