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Competitiveness and the Gender Gap among Young Business Professionals

Author

Listed:
  • Reuben, Ernesto

    () (New York University, Abu Dhabi)

  • Sapienza, Paola

    () (Northwestern University)

  • Zingales, Luigi

    () (University of Chicago)

Abstract

Important gender differences in earnings and career trajectories persist. Particularly, in professions such as business. Gender differences in competitiveness have been proposed as a potential explanation. Using an incentivized measure of competitiveness, this paper investigates whether competitiveness explains future gender differences in earnings and industry choice in a sample of high-ability MBA graduates. We find that competitive individuals earn 9% more than their less competitive counterparts do. Moreover, gender differences in competitiveness explain around 10% of the overall gender gap. We also find that competitive individuals are more likely to work in high-paying industries nine years later, which suggests that the relation between competitiveness and earnings persists in the long run. Lastly, we find that the competitiveness gap in industry emerges over time when MBAs and firms interact with each other.

Suggested Citation

  • Reuben, Ernesto & Sapienza, Paola & Zingales, Luigi, 2015. "Competitiveness and the Gender Gap among Young Business Professionals," IZA Discussion Papers 9446, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9446
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    Citations

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    Cited by:

    1. Non, Arjan & Rohde, Ingrid & de Grip, Andries & Dohmen, Thomas, 2019. "Mission of the company, prosocial attitudes and job preferences: A discrete choice experiment," ROA Research Memorandum 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    2. Emmanuel Peterle & Holger Rau, 2017. "Gender Differences in Competitive Positions: Experimental Evidence on Job Promotion," Working Papers hal-01451382, HAL.
    3. repec:zbw:espost:200515 is not listed on IDEAS
    4. repec:eee:jeborg:v:141:y:2017:i:c:p:96-109 is not listed on IDEAS
    5. Thomas (T.) Buser & Noemi Peter & Stefan Wolter, 2017. "Gender, Willingness to Compete and Career Choices Along the Whole Ability Distribution," Tinbergen Institute Discussion Papers 17-081/I, Tinbergen Institute.
    6. Ramos-Toro, Diego, 2018. "Historical Conflict and Gender Disparities," MPRA Paper 85045, University Library of Munich, Germany.
    7. van Veldhuizen, Roel, 2017. "Gender Differences in Tournament Choices: Risk Preferences, Overconfidence or Competitiveness?," Rationality and Competition Discussion Paper Series 14, CRC TRR 190 Rationality and Competition.
    8. repec:kap:expeco:v:20:y:2017:i:2:d:10.1007_s10683-016-9496-x is not listed on IDEAS
    9. repec:ces:ifodic:v:15:y:2017:i:2:p:19337553 is not listed on IDEAS
    10. repec:eee:jeborg:v:151:y:2018:i:c:p:191-198 is not listed on IDEAS
    11. van Veldhuizen, Roel, 2016. "Gender differences in tournament choices: Risk preferences, overconfidence or competitiveness?," Discussion Papers, Research Unit: Market Behavior SP II 2016-207, WZB Berlin Social Science Center.
    12. Jetter, Michael & Walker, Jay K., 2016. "Gender in Jeopardy!: The Role of Opponent Gender in High-Stakes Competition," IZA Discussion Papers 9669, Institute of Labor Economics (IZA).
    13. Keluoharju, Matti & Knüpfer, Samuli & Tåg, Joacim, 2016. "What Prevents Women from Reaching the Top?," Working Paper Series 1111, Research Institute of Industrial Economics, revised 07 Mar 2019.
    14. Yana Gallen, 2018. "Motherhood and the Gender Productivity Gap," Working Papers 2018-091, Human Capital and Economic Opportunity Working Group.
    15. repec:ces:ifodic:v:15:y:2017:i:2:p:13-17 is not listed on IDEAS
    16. repec:aea:aecrev:v:107:y:2017:i:5:p:115-19 is not listed on IDEAS

    More about this item

    Keywords

    gender gap; gender differences; competitiveness; business career;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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