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Gender Differences in Wage Expectations: Sorting, Children, and Negotiation Styles

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  • Lukas Kiessling
  • Pia Pinger
  • Philipp Seegers
  • Jan Bergerhoff

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 closely resembles actual wage differences, prevails across subgroups, and along the entire distribution. To understand the underlying causes and determinants, we relate expected wages to sorting into majors, industries, and occupations, child-rearing plans, perceived and actual ability, personality, perceived discrimination, and negotiation styles. Our findings indicate that sorting and negotiation styles affect the gender gap in wage expectations much more than prospective child-related labor force interruptions. 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

  • Lukas Kiessling & Pia Pinger & Philipp Seegers & Jan Bergerhoff, 2019. "Gender Differences in Wage Expectations: Sorting, Children, and Negotiation Styles," CESifo Working Paper Series 7827, CESifo.
  • Handle: RePEc:ces:ceswps:_7827
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    2. Briel, Stephanie & Osikominu, Aderonke & Pfeifer, Gregor & Reutter, Mirjam & Satlukal, Sascha, 2020. "Overconfidence and Gender Differences in Wage Expectations," IZA Discussion Papers 13517, Institute of Labor Economics (IZA).
    3. Charlotte K. Marx & Martin Diewald, 2022. "What Works? How Combining Equal Opportunity and Work–Life Measures Relates to the Within-Firm Gender Wage Gap," Social Sciences, MDPI, vol. 11(6), pages 1-34, June.
    4. Paul David Boll & Lukas Mergele & Larissa Zierow, 2022. "The gender pay gap in university student employment," Empirical Economics, Springer, vol. 63(4), pages 2253-2313, October.
    5. Kiessling, Lukas, 2021. "How do parents perceive the returns to parenting styles and neighborhoods?," European Economic Review, Elsevier, vol. 139(C).
    6. Stephanie Briel & Aderonke Osikominu & Gregor Pfeifer & Mirjam Reutter & Sascha Satlukal, 2022. "Gender differences in wage expectations: the role of biased beliefs," Empirical Economics, Springer, vol. 62(1), pages 187-212, January.
    7. Ana Fernandes & Martin Huber & Giannina Vaccaro, 2021. "Gender differences in wage expectations," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-24, June.
    8. Bauer, Anna & Gerner, Hans-Dieter & Jäckle, Robert & Mummert, Uwe & Sandner, Malte & Seebens, Holger, 2023. "OHM Happiness Report (OHR)," MPRA Paper 117403, University Library of Munich, Germany.
    9. Fröberg, Emelie & Säve-Söderbergh, Jenny & Wahlund, Richard & Wiley Wakeman, S., 2023. "The promise (and peril) in approaching gender parity: Preregistered survey experiments addressing gender inequality in negotiations," Labour Economics, Elsevier, vol. 83(C).
    10. Katharina Brütt & Huaiping Yuan, 2022. "Pitfalls of pay transparency: Evidence from the lab and the field," Tinbergen Institute Discussion Papers 22-055/I, Tinbergen Institute.
    11. Ulf Rinne & Hendrik Sonnabend, 2022. "Female workers, male managers: Gender, leadership, and risk‐taking," Southern Economic Journal, John Wiley & Sons, vol. 88(3), pages 906-930, January.

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    More about this item

    Keywords

    subjective wage expectations; gender gap; negotiation styles;
    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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