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Gender differences in wage expectations and negotiation

Author

Listed:
  • Kiessling, Lukas
  • Pinger, Pia
  • Seegers, Philipp
  • Bergerhoff, Jan

Abstract

This paper presents evidence from a large-scale study on gender differences in expected wages before labor market entry. Based on data for over 15,000 students, we document a significant and large gender gap in wage expectations that resembles actual wage differences, prevails across subgroups, and along the entire distribution. Over the life-cycle this gap amounts to roughly half a million Euros. Our findings further suggest that expected wages relate to expected asking and reservation wages and that a difference in plans about “boldness” during prospective wage negotiations pertains to gender difference in expected and actual wages. Given the importance of wage expectations for labor market decisions, household bargaining, and wage setting, our results provide an explanation for persistent gender inequalities.

Suggested Citation

  • Kiessling, Lukas & Pinger, Pia & Seegers, Philipp & Bergerhoff, Jan, 2024. "Gender differences in wage expectations and negotiation," Labour Economics, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:labeco:v:87:y:2024:i:c:s0927537124000010
    DOI: 10.1016/j.labeco.2024.102505
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    More about this item

    Keywords

    Subjective wage expectations; Gender gap; Negotiations;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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