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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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    Cited by:

    1. Lukas Kiessling, 2020. "How Do Parents Perceive the Returns to Parenting Styles and Neighborhoods?," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2020_14, Max Planck Institute for Research on Collective Goods.
    2. Fernandes, Ana & Huber, Martin & Vaccaro, Giannina, 2020. "Gender Differences in Wage Expectations," FSES Working Papers 516, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    3. 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).

    More about this item

    Keywords

    subjective wage expectations; gender gap; negotiation styles;

    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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