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Gender differences in tournament and flat-wage schemes: An experimental study

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  • David Masclet

    (CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Emmanuel Peterle

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Sophie Larribeau

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

We present a new experiment that explores gender differences in both performance and compensation choices. While most of the previous studies have focused on tournament vs. piece-rate schemes, the originality of our study consists in examining the gender gap in the context of a flat wage scheme. Our data indicate that females exert a significantly higher effort than men in fixed payment schemes. We find however no gender difference in performance under the tournament scheme, due to a combination of two effects. On the one hand, men more significantly increase their effort when switching from a flat wage to a tournament scheme. On the other hand, when switching from the flat wage to a tournament scheme, women have less margin to increase performance since their effort was already relatively high with a flat wage. We also find that females are more likely than males to choose a flat-wage scheme than a tournament. This gap however narrows dramatically when feedback on previous experience is provided.

Suggested Citation

  • David Masclet & Emmanuel Peterle & Sophie Larribeau, 2015. "Gender differences in tournament and flat-wage schemes: An experimental study," Post-Print halshs-01105414, HAL.
    • Handle: RePEc:hal:journl:halshs-01105414
    DOI: 10.1016/j.joep.2015.01.003
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01105414
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    4. Beaurain, Guillaume & Masclet, David, 2016. "Does affirmative action reduce gender discrimination and enhance efficiency? New experimental evidence," European Economic Review, Elsevier, vol. 90(C), pages 350-362.
    5. Christoph Buehren & Martin Gschwend & Alex Krumer, 2022. "Feedback, Gender, and Choking under Pressure: Evidence from Alpine Skiing," MAGKS Papers on Economics 202237, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Hanna M. Sittenthaler & Alwine Mohnen, 2020. "Cash, non-cash, or mix? Gender matters! The impact of monetary, non-monetary, and mixed incentives on performance," Journal of Business Economics, Springer, vol. 90(8), pages 1253-1284, September.
    7. Dorian Jullien & Alexandre Truc, 2024. "Towards a History of Behavioral and Experimental Economics in France," GREDEG Working Papers 2024-23, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    8. Peterlé, Emmanuel & Rau, Holger A., 2017. "Gender differences in competitive positions: Experimental evidence on job promotion," University of Göttingen Working Papers in Economics 303, University of Goettingen, Department of Economics.
    9. Milan Kovačević & Srđan Blagojević & Bojan Kuzmanović, 2020. "Sustainability of the Motivation Policy Model for Employees in State Administration," Sustainability, MDPI, vol. 12(19), pages 1-29, September.
    10. Volker Benndorf & Holger A. Rau & Christian Sölch, 2019. "Gender Differences In Motivational Crowding Out Of Work Performance," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 206-226, January.
    11. Nieken, Petra & Dato, Simon, 2016. "Compensation and Honesty: Gender Differences in Lying," VfS Annual Conference 2016 (Augsburg): Demographic Change 145758, Verein für Socialpolitik / German Economic Association.
    12. Dalton, P.S. & Gonzalez Jimenez, V.H. & Noussair, Charles, 2016. "Self-Chosen Goals : Incentives and Gender Differences (revision of 2015-021)," Other publications TiSEM 17c07360-8b49-4f45-a776-8, Tilburg University, School of Economics and Management.
    13. Etienne Dagorn & David Masclet & Thierry Penard, 2022. "The Behavioral Determinants of School Achievement: A Lab in the Field Experiment in Middle School," Economics Working Paper Archive (University of Rennes & University of Caen) 2022-05, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    14. Jørgensen, Lotte Kofoed & Piovesan, Marco & Willadsen, Helene, 2022. "Gender differences in competitiveness: Friends matter," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    15. van Veldhuizen, Roel, 2022. "Gender Differences in Tournament Choices: Risk Preferences, Overconfidence or Competitiveness?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(4), pages 1595-1618.
    16. Domínguez, José J., 2023. "Diversified committees in hiring processes: Lab evidence on group dynamics," Journal of Economic Psychology, Elsevier, vol. 97(C).
    17. Friedl, Andreas & Neyse, Levent & Schmidt, Ulrich, 2018. "Payment scheme changes and effort Adjustment: The role of 2D:4D digit ratio," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 72(C), pages 86-94.
    18. Erkal, Nisvan & Gangadharan, Lata & Koh, Boon Han, 2018. "Monetary and non-monetary incentives in real-effort tournaments," European Economic Review, Elsevier, vol. 101(C), pages 528-545.

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    More about this item

    Keywords

    Experiment; gender Differences; tournament scheme; flat-wage scheme;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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