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Psychological Bias and Gender Wage Gap

Author

Listed:
  • Frédéric Palomino

    (Department of Economics - EDHEC - EDHEC Business School - UCL - Université catholique de Lille)

  • Eloïc-Anil Peyrache

    (Department of Finance and Economics - HEC School of Management - Université de Liège)

Abstract

Basing our work on the literature on psychology that highlights differences in confidencelevels between men and women, we provide a rationale for the simultaneous existence of the two dimensions of the gender wage gap: (i) on average, men earn more than women and (ii) the difference in wages depends on the gender structure. We also argue that although an equal compensation policy does not eliminate the gender wage gap, it nonetheless increases social welfare. Finally, endogenizing the choice of task by agents, we show how women, in a vast majority, can self-select on low paying jobs.

Suggested Citation

  • Frédéric Palomino & Eloïc-Anil Peyrache, 2010. "Psychological Bias and Gender Wage Gap," Post-Print hal-00911836, HAL.
    • Handle: RePEc:hal:journl:hal-00911836
    DOI: 10.1016/j.jebo.2010.07.004
    Note: View the original document on HAL open archive server: https://hal.science/hal-00911836
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    References listed on IDEAS

    as
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    Cited by:

    1. Mario Lackner, 2021. "Gender differences in competitiveness," IZA World of Labor, Institute of Labor Economics (IZA), pages 236-236, November.
    2. repec:ces:ifodic:v:15:y:2017:i:2:p:19337553 is not listed on IDEAS
    3. Nas Ozen,Selin Efsan & Hut,Stefan & Levin,Victoria & Munoz Boudet,Ana Maria, 2020. "A Field Experiment on the Role of Socioemotional Skills and Gender for Hiring in Turkey," Policy Research Working Paper Series 9154, The World Bank.
    4. Alexander Harin, 2022. "Forbidden Zones for the Expectations of Data: New Mathematical Methods and Models for Behavioral Economics," Academic Journal of Applied Mathematical Sciences, Academic Research Publishing Group, vol. 8(1), pages 12-26, 12-2021.
    5. Kataria, Mitesh, 2017. "How long do you think it will take? Field Evidence on Gender Differences in Time Optimism," Working Papers in Economics 694, University of Gothenburg, Department of Economics.
    6. Rahmah Ismail & Maryam Farhadi & Chung‐Khain Wye, 2017. "Occupational Segregation and Gender Wage Differentials: Evidence from Malaysia," Asian Economic Journal, East Asian Economic Association, vol. 31(4), pages 381-401, December.
    7. Samuel Adams & Fanny Adams Quagrainie & Edem Kwame Mensah Klobodu, 2014. "Psychological contract formation: The influence of demographic factors," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 17(3), pages 279-294, September.
    8. repec:ces:ifodic:v:15:y:2017:i:2:p:13-17 is not listed on IDEAS
    9. Harin, Alexander, 2021. "Behavioral economics. Forbidden zones. New method and models," MPRA Paper 106545, University Library of Munich, Germany.

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