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Updating, Self-Confidence and Discrimination

Author

Listed:
  • Albrecht, Konstanze

    (University of Bonn)

  • von Essen, Emma

    (Stockholm University)

  • Parys, Juliane

    (McKinsey&Co)

  • Szech, Nora

    (Karlsruhe Institute of Technology)

Abstract

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.

Suggested Citation

  • Albrecht, Konstanze & von Essen, Emma & Parys, Juliane & Szech, Nora, 2011. "Updating, Self-Confidence and Discrimination," IZA Discussion Papers 6203, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6203
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    1. Stereotypes matter
      by chris dillow in Stumbling and Mumbling on 2012-01-09 21:13:59

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    Cited by:

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    2. Krawczyk, Michał & Smyk, Magdalena, 2016. "Author׳s gender affects rating of academic articles: Evidence from an incentivized, deception-free laboratory experiment," European Economic Review, Elsevier, vol. 90(C), pages 326-335.
    3. Rajesh Ramachandran & Christopher Rauh, 2018. "Discrimination without taste: how discrimination can spillover and persist," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 9(3), pages 249-274, August.
    4. Thomas Buser & Leonie Gerhards & Joël Weele, 2018. "Responsiveness to feedback as a personal trait," Journal of Risk and Uncertainty, Springer, vol. 56(2), pages 165-192, April.
    5. Daniel Martin & Philip Marx, 2022. "A Robust Test of Prejudice for Discrimination Experiments," Management Science, INFORMS, vol. 68(6), pages 4527-4536, June.
    6. Dustan, Andrew & Koutout, Kristine & Leo, Greg, 2022. "Second-order beliefs and gender," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 752-781.
    7. Suchon, Rémi & Houser, Daniel, 2022. "Image spillovers in groups and misreporting," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 302-314.
    8. Stijn Baert & Ann-Sophie De Pauw & Nick Deschacht, 2016. "Do Employer Preferences Contribute to Sticky Floors?," ILR Review, Cornell University, ILR School, vol. 69(3), pages 714-736, May.
    9. Markus Eyting, 2022. "Why do we Discriminate? The Role of Motivated Reasoning," Working Papers 2208, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    10. Ankush Asri & Deepti Bhatia & Urs Fischbacher, 2022. "Caste and Unequal Access to Education: An Experimental Study," TWI Research Paper Series 127, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    11. Philippe Sterkens & Stijn Baert & Claudia Rooman & Eva Derous, 2021. "Why making promotion after a burnout is like boiling the ocean," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1017, Ghent University, Faculty of Economics and Business Administration.
    12. Michał Krawczyk & Natalia Starzykowska, 2017. "Belief-based and taste-based gender discrimination. Evidence from a game show," Working Papers 2017-15, Faculty of Economic Sciences, University of Warsaw.
    13. Cacault, Maria Paula & Grieder, Manuel, 2019. "How group identification distorts beliefs," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 63-76.
    14. Eyting, Markus, 2022. "Why do we discriminate? The role of motivated reasoning," SAFE Working Paper Series 356, Leibniz Institute for Financial Research SAFE.
    15. Leonora Risse, 2020. "Leaning in: Is higher confidence the key to women's career advancement?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(1), pages 43-77.
    16. 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.
    17. David Huber & Leonie Kühl & Nora Szech, 2022. "Setting Adequate Wages for Workers: Managers' Work Experience, Incentive Scheme and Gender Matter," CESifo Working Paper Series 9713, CESifo.

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    More about this item

    Keywords

    conservatism; gender; discrimination; self-confidence; updating;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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