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Discrimination in Evaluation Criteria: The Role of Beliefs versus Outcomes

Author

Listed:
  • Nisvan Erkal

    (Department of Economics, University of Melbourne)

  • Lata Gangadharan

    (Department of Economics, Monash University)

  • Boon Han Koh

    (Department of Economics, University of Exeter)

Abstract

Using incentivized experiments, we investigate whether different criteria are used in evaluating male and female leaders when outcomes are determined by unobservable choices and luck. Evaluators form beliefs about leaders' choices and make discretionary payments. We find that while payments to male leaders are determined by both outcomes and evaluators' beliefs, those to female leaders are determined by outcomes only. We label this new source of gender bias as the gender criteria gap. Our findings imply that high outcomes are necessary for women to get bonuses, but men can receive bonuses for low outcomes as long as evaluators hold them in high regard.

Suggested Citation

  • Nisvan Erkal & Lata Gangadharan & Boon Han Koh, 2023. "Discrimination in Evaluation Criteria: The Role of Beliefs versus Outcomes," Discussion Papers 2316, University of Exeter, Department of Economics.
    • Handle: RePEc:exe:wpaper:2316
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    File URL: https://exetereconomics.github.io/RePEc/dpapers/DP2316.pdf
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    More about this item

    Keywords

    gender gaps; discrimination; evaluation criteria; biases in beliefs; outcome bias; social preferences; laboratory experiments;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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