Advanced Search
MyIDEAS: Login to save this paper or follow this series

The gender wage gap – due to differences in efficiency wage effects or discrimination?

Contents:

Author Info

  • Schwieren,Christiane

    (METEOR)

Registered author(s):

    Abstract

    Women often receive lower wages than men for comparable work. Many explanations are offered for this fact, ranging from women’s lower negotiation skills to discrimination by employers. In this paper, an experiment, which was originally conceptualized to test efficiency-wage theory, has been applied to test whether women get paid less than men in an experimental market, and if this is the case, why. The experiment is a variant of Fehr & Falk’s (1999) double auction with effort. Results are striking: Female workers receive significantly lower wages than male workers, no matter whether men or women are in the role of the firm. However, this does not pay for the firms, as women’s reactions to low wages are equal to those of men: low effort. More specifically, a high discrepancy between the wage asked by a worker and the wage offered by the firm leads to low effort. Extrapolating from the experiment to the “real” labor market, the results are pointing towards a vicious cycle: Women are offered lower wages than they expect, and consequentially they exhibit low effort levels. Therefore, employers who do not realize that women – just like men – reciprocate might regard their productivity as lower.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://edocs.ub.unimaas.nl/loader/file.asp?id=801
    Download Restriction: no

    Bibliographic Info

    Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 046.

    as in new window
    Length:
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:unm:umamet:2003046

    Contact details of provider:
    Postal: P.O. Box 616, 6200 MD Maastricht
    Phone: +31 (0)43 38 83 830
    Email:
    Web page: http://www.maastrichtuniversity.nl/
    More information through EDIRC

    Related research

    Keywords: labour economics ;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Francine D. Blau & Larry M. Kahn, 1981. "Race and sex differences in quits by young workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(4), pages 563-577, July.
    2. Christoph Meng, 2002. "(Fe)male jobs and (fe)male wages: disentangling the effect of personal and job characteristics on wages by measuring stereotypes," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, ULB -- Universite Libre de Bruxelles, vol. 45(2), pages 143-167.
    3. Haagsma, Rein, 1993. "Is statistical discrimination socially efficient?," Information Economics and Policy, Elsevier, Elsevier, vol. 5(1), pages 31-50, January.
    4. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," NBER Working Papers 7732, National Bureau of Economic Research, Inc.
    5. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters, National Bureau of Economic Research, Inc, in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290 National Bureau of Economic Research, Inc.
    6. Deborah Anderson & David Shapiro, 1996. "Racial differences in access to high-paying jobs and the wage gap between black and white women," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(2), pages 273-286, January.
    7. Viscusi, W Kip, 1980. "Sex Differences in Worker Quitting," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 388-98, August.
    8. Ernst Fehr & Armin Falk, 1999. "Wage Rigidity in a Competitive Incomplete Contract Market," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 107(1), pages 106-134, February.
    9. Walters, Amy E. & Stuhlmacher, Alice F. & Meyer, Lia L., 1998. "Gender and Negotiator Competitiveness: A Meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, Elsevier, vol. 76(1), pages 1-29, October.
    10. Francine D. Blau & Marianne A. Ferber, 1991. "Career Plans and Expectations of Young Women and Men: The Earnings Gap and Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 26(4), pages 581-607.
    11. Light, Audrey & Ureta, Manuelita, 1992. "Panel Estimates of Male and Female Job Turnover Behavior: Can Female Nonquitters Be Identified?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 10(2), pages 156-81, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Jellal, Mohamed, 2014. "Social psychology and gender efficiency wage gap," MPRA Paper 57884, University Library of Munich, Germany.
    2. Schwieren, Christiane, 2012. "The gender wage gap in experimental labor markets," Economics Letters, Elsevier, Elsevier, vol. 117(3), pages 592-595.
    3. Schwieren, Christiane & Sutter, Matthias, 2008. "Trust in cooperation or ability? An experimental study on gender differences," Economics Letters, Elsevier, Elsevier, vol. 99(3), pages 494-497, June.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:unm:umamet:2003046. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Bollen).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.