The role of risk and negotiation in explaining the gender wage gap
journal contributionposted on 2023-05-21, 01:57 authored by Maitra, P, Ananta NeelimAnanta Neelim, Tran, C
This paper examines how gender differences in behavioural preferences affect the gender wage gap in Vietnam. We conduct a lab-in-the-field experiment to measure preferences for risk and negotiation and administer a complementary survey to collect data on wages and observable factors that affect wages. In our sample, women earn less than men but differences in observable characteristics across gender cannot explain the gender wage gap, i.e. most of the gender gap is unexplained. Our experimental results show that women are more risk-averse and have a lower propensity to negotiate. The two variables together account for 15.5% of the unexplained component of the wage gap and are jointly associated with a 29% reduction in the gender wage gap.
Publication titleJournal of Economic Behavior and Organization
PublisherElsevier Science Bv
Place of publicationPo Box 211, Amsterdam, Netherlands, 1000 Ae
Rights statementCopyright (2021) Elsevier Science B.V. This is an open access article under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits use, distribution and reproduction in any medium, provided the original work is properly cited.