Updating, Self-Confidence and Discrimination

Konstanze Albrecht (), Emma von Essen (), Juliane Parys () and Nora Szech
Additional contact information
Konstanze Albrecht: University of Bonn
Juliane Parys: McKinsey&Co

No 6203, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In a laboratory experiment, we show that subjects incorporate irrelevant group information into their evaluations of individuals. Individuals from on average worse performing groups receive lower evaluations, even if they are known to perform equally well as individuals from better performing groups. Our experiment leaves room neither for statistical nor taste-based discrimination. The discrimination we find is rather due to conservatism in updating beliefs. This conservatism is more pronounced in females. Furthermore, self-confident male evaluators overvalue male performers. Additionally, we use our data to simulate a job promotion ladder: Few rounds of moderate discrimination virtually eliminate females in higher positions.

Keywords: conservatism; gender; discrimination; self-confidence; updating (search for similar items in EconPapers)
JEL-codes: C91 D81 J16 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2011-12
New Economics Papers: this item is included in nep-cbe, nep-dem and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: European Economic Review, 2013, 60, 144-169

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Journal Article: Updating, self-confidence, and discrimination (2013)
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