Negotiating the Gender Wage Gap

Katrien Stevens () and Stephen Whelan ()

No 2016-19, Working Papers from University of Sydney, School of Economics

Abstract: There is some evidence that gender differences exist in the propensity to negotiate and outcomes from negotiation. Evidence from the psychology and management literatures suggest that relative to males, females are less likely to initiate negotiation and in the event of negotiation, ask for and receive less. This paper examines the propensity of males and females to negotiate over pay, the wage outcomes resulting from negotiation and its impact on the gender wage gap in a non-experimental setting. Using a unique Australian dataset we find evidence that females are less likely than males to have the opportunity to negotiate over pay in their jobs. However, conditional on the opportunity to negotiate, they are no less likely to actually negotiate their pay. Further, while negotiation is associated with higher wage outcomes, females do not fare worse than males in the event of negotiation.

Keywords: negotiation; gender; wage differentials; labor market (search for similar items in EconPapers)
Date: 2016-12
New Economics Papers: this item is included in nep-exp, nep-gen and nep-hrm
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Citations: View citations in EconPapers (3)

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Journal Article: Negotiating the Gender Wage Gap (2019)
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