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Gender differences in tournament and flat-wage schemes: An experimental study

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  • Masclet, David
  • Peterle, Emmanuel
  • Larribeau, Sophie

Abstract

We present a new experiment that explores gender differences in both performance and compensation choices. While most of the previous studies have focused on tournament vs. piece-rate schemes, the originality of our study consists in examining the gender gap in the context of a flat wage scheme. Our data indicate that females exert a significantly higher effort than men in fixed payment schemes. We find however no gender difference in performance under the tournament scheme, due to a combination of two effects. On the one hand, men more significantly increase their effort when switching from a flat wage to a tournament scheme. On the other hand, when switching from the flat wage to a tournament scheme, women have less margin to increase performance since their effort was already relatively high with a flat wage. We also find that females are more likely than males to choose a flat-wage scheme than a tournament. This gap however narrows dramatically when feedback on previous experience is provided.

Suggested Citation

  • Masclet, David & Peterle, Emmanuel & Larribeau, Sophie, 2015. "Gender differences in tournament and flat-wage schemes: An experimental study," Journal of Economic Psychology, Elsevier, vol. 47(C), pages 103-115.
  • Handle: RePEc:eee:joepsy:v:47:y:2015:i:c:p:103-115
    DOI: 10.1016/j.joep.2015.01.003
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    Citations

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    Cited by:

    1. Emmanuel Peterle & Holger Rau, 2017. "Gender Differences in Competitive Positions: Experimental Evidence on Job Promotion," Working Papers hal-01451382, HAL.
    2. van Veldhuizen, Roel, 2016. "Gender differences in tournament choices: Risk preferences, overconfidence or competitiveness?," Discussion Papers, Research Unit: Market Behavior SP II 2016-207, Social Science Research Center Berlin (WZB).
    3. Valeria Maggian & Antonio Nicolò, 2016. "The wrong man for the job: biased beliefs and job mismatching," Post-Print halshs-01324733, HAL.
    4. Werner Bönte & Sandro Lombardo & Diemo Urbig, 2016. "Economics meets Psychology:Experimental and self-reported Measures of Individual Competitiveness," Schumpeter Discussion Papers SDP16006, Universitätsbibliothek Wuppertal, University Library.
    5. Beaurain, Guillaume & Masclet, David, 2016. "Does affirmative action reduce gender discrimination and enhance efficiency? New experimental evidence," European Economic Review, Elsevier, vol. 90(C), pages 350-362.
    6. repec:eee:soceco:v:72:y:2018:i:c:p:86-94 is not listed on IDEAS
    7. Nieken, Petra & Dato, Simon, 2016. "Compensation and Honesty: Gender Differences in Lying," Annual Conference 2016 (Augsburg): Demographic Change 145758, Verein für Socialpolitik / German Economic Association.
    8. Dalton, P.S. & Gonzalez Jimenez, V.H. & Noussair, Charles, 2016. "Self-Chosen Goals : Incentives and Gender Differences (revision of 2015-021)," Discussion Paper 2016-036, Tilburg University, Center for Economic Research.
    9. repec:eee:eecrev:v:101:y:2018:i:c:p:528-545 is not listed on IDEAS
    10. van Veldhuizen, Roel, 2017. "Gender Differences in Tournament Choices: Risk Preferences, Overconfidence or Competitiveness?," Rationality and Competition Discussion Paper Series 14, CRC TRR 190 Rationality and Competition.

    More about this item

    Keywords

    Experiment; Gender differences; Tournament scheme; Flat-wage scheme;

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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