IDEAS home Printed from https://ideas.repec.org/p/nad/wpaper/20190031.html
   My bibliography  Save this paper

Taste for competition and the gender gap among young business professionals

Author

Listed:
  • Ernesto Reuben
  • Paola Sapienza
  • Luigi Zingales

    (Division of Social Science)

Abstract

We study whether and why taste for competition (as measured by Niederle and Vesterlund, 2007) affects MBA salaries and whether this effect can explain the wage gender gap. At graduation, MBAs with higher taste for competition earn $15K (9.3%) more. Over time this effect is mitigated by overconfidence. Seven years after graduation, competitive MBAs with a low degree of overconfidence earn 26% more, while those who are highly overconfident earn 19% less. Taste for competition explains 10% of the gender gap at graduation and none seven years later.

Suggested Citation

  • Ernesto Reuben & Paola Sapienza & Luigi Zingales, 2019. "Taste for competition and the gender gap among young business professionals," Working Papers 20190031, New York University Abu Dhabi, Department of Social Science, revised Nov 2019.
  • Handle: RePEc:nad:wpaper:20190031
    as

    Download full text from publisher

    File URL: https://nyuad.nyu.edu/content/dam/nyuad/academics/divisions/social-science/working-papers/2019/0031.pdf
    File Function: First version, 2019
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ernesto Reuben & Matthew Wiswall & Basit Zafar, 2017. "Preferences and Biases in Educational Choices and Labour Market Expectations: Shrinking the Black Box of Gender," Economic Journal, Royal Economic Society, vol. 127(604), pages 2153-2186, September.
    2. Ben Gillen & Erik Snowberg & Leeat Yariv, 2019. "Experimenting with Measurement Error: Techniques with Applications to the Caltech Cohort Study," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1826-1863.
    3. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    4. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1067-1101.
    5. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    6. Patrick Puhani, 2000. "The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
    7. Shane Frederick, 2005. "Cognitive Reflection and Decision Making," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 25-42, Fall.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fallucchi, Francesco & Nosenzo, Daniele & Reuben, Ernesto, 2020. "Measuring preferences for competition with experimentally-validated survey questions," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 402-423.
    2. Buser, Thomas & van den Assem, Martijn J. & van Dolder, Dennie, 2023. "Gender and willingness to compete for high stakes," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 350-370.
    3. Hakimov, Rustamdjan & Schmacker, Renke & Terrier, Camille, 2022. "Confidence and college applications: Evidence from a randomized intervention," Discussion Papers, Research Unit: Market Behavior SP II 2022-209, WZB Berlin Social Science Center.
    4. Lina Lozano & Ernesto Reuben, 2022. "Measuring Preferences for Competition," Working Papers 20220078, New York University Abu Dhabi, Department of Social Science, revised Aug 2022.
    5. Fang, Chao & Zhang, Ernest & Zhang, Junfu, 2021. "Do women give up competing more easily? Evidence from speedcubers," Economics Letters, Elsevier, vol. 205(C).
    6. Maitra, Pushkar & Neelim, Ananta & Tran, Chau, 2021. "The role of risk and negotiation in explaining the gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 1-27.
    7. Markowsky, Eva & Beblo, Miriam, 2022. "When do we observe a gender gap in competition entry? A meta-analysis of the experimental literature," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 139-163.
    8. Johnsen, Åshild A. & Finseraas, Henning & Hanson, Torbjørn & Kotsadam, Andreas, 2023. "The malleability of competitive preferences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 104(C).
    9. Aurélie Dariel & Nikos Nikiforakis & Jan Stoop, 2020. "Does selection bias cause us to overestimate gender differences in competitiveness?," Working Papers 20200046, New York University Abu Dhabi, Department of Social Science, revised May 2020.
    10. Halladay, Brianna & Landsman, Rachel, 2022. "Perception matters: The role of task gender stereotype on confidence and tournament selection," Journal of Economic Behavior & Organization, Elsevier, vol. 199(C), pages 35-43.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Halladay, Brianna & Landsman, Rachel, 2022. "Perception matters: The role of task gender stereotype on confidence and tournament selection," Journal of Economic Behavior & Organization, Elsevier, vol. 199(C), pages 35-43.
    2. Fallucchi, Francesco & Nosenzo, Daniele & Reuben, Ernesto, 2020. "Measuring preferences for competition with experimentally-validated survey questions," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 402-423.
    3. Lina Lozano & Ernesto Reuben, 2022. "Measuring Preferences for Competition," Working Papers 20220078, New York University Abu Dhabi, Department of Social Science, revised Aug 2022.
    4. Trieu, Chi, 2023. "Who's who: How uncertainty about the favored group effects outcomes of affirmative action," DICE Discussion Papers 405, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    5. Kessel, Dany & Mollerstrom, Johanna & van Veldhuizen, Roel, 2021. "Can simple advice eliminate the gender gap in willingness to compete?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 138, pages 1-1.
    6. Zylbersztejn, Adam & Babutsidze, Zakaria & Hanaki, Nobuyuki, 2020. "Preferences for observable information in a strategic setting: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 268-285.
    7. Balafoutas, Loukas & Sutter, Matthias, 2019. "How uncertainty and ambiguity in tournaments affect gender differences in competitive behavior," European Economic Review, Elsevier, vol. 118(C), pages 1-13.
    8. Halko, Marja-Liisa & Lappalainen, Olli & Sääksvuori, Lauri, 2021. "Do non-choice data reveal economic preferences? Evidence from biometric data and compensation-scheme choice," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 87-104.
    9. Rhee, Elaine & Noussair, Charles N., 2022. "Is the gender difference in competitive behavior history dependent?," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 44-67.
    10. Johannes Abeler & Daniele Nosenzo, 2015. "Self-selection into laboratory experiments: pro-social motives versus monetary incentives," Experimental Economics, Springer;Economic Science Association, vol. 18(2), pages 195-214, June.
    11. Helena Fornwagner & Monika Pompeo & Nina Serdarevic, 2023. "Choosing Competition on Behalf of Someone Else," Management Science, INFORMS, vol. 69(3), pages 1555-1574, March.
    12. Coffman, Katherine & Flikkema, Clio Bryant & Shurchkov, Olga, 2021. "Gender stereotypes in deliberation and team decisions," Games and Economic Behavior, Elsevier, vol. 129(C), pages 329-349.
    13. repec:hal:spmain:info:hdl:2441/3r19808hvq8dlb97k36cbcqihj is not listed on IDEAS
    14. Maria Bigoni & Stefania Bortolotti & Marco Casari & Diego Gambetta, 2019. "At the Root of the North–South Cooperation Gap in Italy: Preferences or Beliefs?," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1139-1152.
    15. Grandjean, Gilles & Lefebvre, Mathieu & Mantovani, Marco, 2022. "Preferences and strategic behavior in public goods games," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 171-185.
    16. Florian Engl & Arno Riedl & Roberto Weber, 2021. "Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs," American Economic Journal: Microeconomics, American Economic Association, vol. 13(4), pages 261-299, November.
    17. Schildberg-Hörisch, Hannah & Trieu, Chi & Willrodt, Jana, 2020. "Perceived fairness and consequences of affirmative action policies," DICE Discussion Papers 338, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    18. Hakimov, Rustamdjan & Schmacker, Renke & Terrier, Camille, 2022. "Confidence and college applications: Evidence from a randomized intervention," Discussion Papers, Research Unit: Market Behavior SP II 2022-209, WZB Berlin Social Science Center.
    19. Boneva, Teodora & Buser, Thomas & Falk, Armin & Kosse, Fabian, 2021. "The Origins of Gender Differences in Competitiveness and Earnings Expectations: Causal Evidence from a Mentoring Intervention," IZA Discussion Papers 14800, Institute of Labor Economics (IZA).
    20. Thomas Buser & Hessel Oosterbeek, "undated". "The anatomy of competitiveness," Tinbergen Institute Discussion Papers 23-031/I, Tinbergen Institute.
    21. Jonas Tungodden & Alexander Willén, 2023. "When Parents Decide: Gender Differences in Competitiveness," Journal of Political Economy, University of Chicago Press, vol. 131(3), pages 751-801.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nad:wpaper:20190031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alizeh Batra (email available below). General contact details of provider: https://edirc.repec.org/data/ecnyuae.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.