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Updating, Self-Confidence and Discrimination

  • Albrecht, Konstanze

    ()

    (University of Bonn)

  • Von Essen, Emma

    ()

    (Stockholm University)

  • Parys, Juliane

    ()

    (University of Bonn)

  • Szech, Nora

    ()

    (University of Bamberg)

In a laboratory experiment, we show that subjects incorporate irrelevant group information into their evaluations of individuals. Individuals from on average worse performing groups receive lower evaluations, even if they are known to perform equally well as individuals from better performing groups. Our experiment leaves room neither for statistical nor taste-based discrimination. The discrimination we find is rather due to conservatism in updating beliefs. This conservatism is more pronounced in females. Furthermore, self-confident male evaluators overvalue male performers. Additionally, we use our data to simulate a job promotion ladder: Few rounds of moderate discrimination virtually eliminate females in higher positions.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6203.

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Length: 40 pages
Date of creation: Dec 2011
Date of revision:
Publication status: published in: European Economic Review, 2013, 60, 144-169
Handle: RePEc:iza:izadps:dp6203
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  1. Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2006. "Nonparametric Tests for Treatment Effect Heterogeneity," NBER Technical Working Papers 0324, National Bureau of Economic Research, Inc.
  2. Dohmen, Thomas J. & Falk, Armin & Huffman, David & Marklein, Felix & Sunde, Uwe, 2009. "Biased probability judgment: Evidence of incidence and relationship to economic outcomes from a representative sample," Munich Reprints in Economics 20042, University of Munich, Department of Economics.
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  7. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away from Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1067-1101, 08.
  8. Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
  9. Markus Mobius & Muriel Niederle & Paul Niehaus & Tanya S. Rosenblat, 2011. "Managing self-confidence: theory and experimental evidence," Working Papers 11-14, Federal Reserve Bank of Boston.
  10. Francine D. Blau & Jed DeVaro, 2006. "New Evidence on Gender Difference in Promotion Rates: An Empirical Analysis of a Sample of New Hires," NBER Working Papers 12321, National Bureau of Economic Research, Inc.
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