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Psychological bias and gender wage gap


  • Palomino, Frédéric
  • Peyrache, Eloïc-Anil


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.

Suggested Citation

  • Palomino, Frédéric & Peyrache, Eloïc-Anil, 2010. "Psychological bias and gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 563-573, December.
  • Handle: RePEc:eee:jeborg:v:76:y:2010:i:3:p:563-573

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    References listed on IDEAS

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    Cited by:

    1. Estrin, Saul & Stephan, Ute & Vujić, Sunčica, 2014. "Do women earn less even as social entrepreneurs?," LSE Research Online Documents on Economics 60606, London School of Economics and Political Science, LSE Library.
    2. repec:ces:ifodic:v:15:y:2017:i:2:p:19337553 is not listed on IDEAS
    3. René Böheim & Dominik Grübl & Mario Lackner, 2017. "Gender Differences in Competitiveness," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(2), pages 13-17, August.
    4. Kataria, Mitesh, 2017. "How long do you think it will take? Field Evidence on Gender Differences in Time Optimism," Working Papers in Economics 694, University of Gothenburg, Department of Economics.
    5. repec:ces:ifodic:v:15:y:2017:i:2:p:13-17 is not listed on IDEAS


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