Gender Differences in Negotiations and Labor Market Outcomes: Evidence from an Information Provision Experiment with College Students

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IZA Research Seminar

Place:Schaumburg-Lippe-Str. 9, 53113 Bonn

日期:08.06.2021, 14:30 - 15:45

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Basit Zafar(University of Michigan)

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https://us02web.zoom.us/j/87487213161

Meeting ID: 874 8721 3161

Abstract:

Motivated by evidence that individuals are systematically misinformed about the prevalence of negotiations and the expected efficacy of negotiations, we conducted a randomized information experiment with the Business major bachelor�s graduating cohorts of 2018 and 2019 of Boston University. Specifically, a subset of individuals at the end of their junior year � prior to the job search process � were provided with information about the relative difference in negotiation rates by gender along with the efficacy rate of negotiation reported by past graduates. Comparing pre- and post- information beliefs about negotiation likelihood at the time of treatment, we find that the information increased the stated likelihood of negotiating any monetary aspect of students� first job. While the treatment focused on monetary aspects, the information appears to have also nudged students� intentions of negotiating non-monetary aspects of the job, with both males and females increasing their stated likelihood of negotiating non-monetary aspects by.
后跟踪治疗参数post-g时raduation, we find economically and statistically significant impacts on actual labor market outcomes. The treatment: (1) increased the likelihood of negotiating non-monetary aspects of students� first jobs for both males and females; (2) treated males were 10pp (50%) more likely to have negotiated some monetary aspect of their job offers, compared to control males. Surprisingly, treated females were no more likely to negotiate than their control female peers; however, both groups negotiated at significantly higher rates than females in previous cohorts. We present several pieces of evidence that suggest that this is due, in part, to gender-specific treatment spillovers; (3) weakly increased the likelihood that students � especially females � were satisfied with their current job. While our estimates for annual earnings are imprecise, point estimates suggest that the treatment group had a lower gender earnings gap compared to the previous cohort. Finally, our analysis suggests that the mechanism behind the observed treatment effects operates through modifying beliefs for females, and through a saliency channel for males.

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