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Gender differences in reservation wages in search experiments

Author

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  • McGee, Andrew
  • McGee, Peter

Abstract

Women report setting lower reservation wages than men in survey data. We show that women set reservation wages that are 14 to 18 percent lower than men's in laboratory search experiments that control for factors not fully observed in surveys such as offer distributions and outside options. This gender gap—which exists even controlling for overconfidence, preferences, personality, and intelligence—leads women to spend less time searching than men while accepting lower wages. More risk tolerant women set reservation wages that are too low early in search relative to theoretically optimal reservation wages given their risk preferences, reducing their earnings.

Suggested Citation

  • McGee, Andrew & McGee, Peter, 2025. "Gender differences in reservation wages in search experiments," Labour Economics, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:labeco:v:94:y:2025:i:c:s0927537125000259
    DOI: 10.1016/j.labeco.2025.102698
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    More about this item

    Keywords

    Reservation wages; Gender wage gaps; Search experiments; Jel codes: j16; J64; C91;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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