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Selection into Leadership and Dishonest Behavior of Leaders: A Gender Experiment

Author

Listed:
  • Kerstin Grosch, Kerstin

    (Institute for Advanced Studies, Vienna, Austria)

  • Müller, Stephan

    (University of Goettingen, Germany)

  • Rau, Holger A.

    (University of Goettingen, Germany)

  • Zhurakhovska, Lilia

    (University of Duisburg-Essen, Germany)

Abstract

Leaders often have to weigh ethical against monetary consequences. Such situations may evoke psychological costs from being dishonest and dismissing higher monetary benefits for others. In a within-subjects experiment, we analyze such a dilemma. We first measure individual dishonest behavior when subjects report the outcome of a die roll, which determines their payoffs. Subsequently, they act as leaders and report payoffs for a group including themselves. In our main treatment, subjects can apply for leadership, whereas in the control treatment, we assign leadership randomly. Results reveal that women behave more dishonestly as leaders while men behave similarly in both the individual and the group decision. For female leaders, we find that sorting into leadership is not related to individual honesty preferences. In the control we find that female leaders do not increase dishonesty. A follow-up study reveals that female leaders become more dishonest after assuming leadership, as they align dishonest behavior with their belief on group members’ honesty preferences.

Suggested Citation

  • Kerstin Grosch, Kerstin & Müller, Stephan & Rau, Holger A. & Zhurakhovska, Lilia, 2020. "Selection into Leadership and Dishonest Behavior of Leaders: A Gender Experiment," IHS Working Paper Series 19, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihswps:19
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    File URL: https://irihs.ihs.ac.at/id/eprint/6434
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    References listed on IDEAS

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    2. Justus Haucap & Christina Heldman & Holger A. Rau, 2022. "Gender and Cooperation in the Presence of Negative Externalities," CESifo Working Paper Series 9614, CESifo.
    3. Haucap, Justus & Heldman, Christina & Rau, Holger A., 2022. "Gender and collusion," DICE Discussion Papers 380, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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    More about this item

    Keywords

    leadership; decision for others; lab experiment; gender differences; dishonesty;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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