Gender differences in wage expectations: sorting, children, and negotiation style / Lukas Kiessling (Max Planck Institute for Research on Collective Goods and University of Bonn), Pia Pinger (University of Cologne, briq and IZA), Philipp Seegers (Maastricht University), Jan Bergerhoff (Maastricht University) ; IZA Institute of Labor Economics
VerfasserKiessling, Lukas ; Dovern-Pinger, Pia Rosina ; Seegers, Philipp ; Bergerhoff, Jan
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, August 2019
Elektronische Ressource
Umfang1 Online-Ressource (50 Seiten) : Diagramme
SerieDiscussion paper ; no. 12522
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Gender differences in wage expectations: sorting, children, and negotiation style [1.01 mb]
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This paper presents evidence from a large-scale study on gender differences in expected wages before labor market entry. Based on data for over 15,000 students, we document a significant and large gender gap in wage expectations that closely resembles actual wage differences, prevails across subgroups, and along the entire distribution. To understand the underlying causes and determinants, we relate expected wages to sorting into majors, industries, and occupations, child-rearing plans, perceived and actual ability, personality, perceived discrimination, and negotiation styles. Our findings indicate that sorting and negotiation styles affect the gender gap in wage expectations much more than prospective child-related labor force interruptions. Given the importance of wage expectations for labor market decisions, household bargaining, and wage setting, our results provide an explanation for persistent gender inequalities.