Effects of Expected Effort on Females in the Labor Market
Ori Zax (),
Mosi Rosenboim () and
Tal Shavit ()
Forum for Social Economics, 2014, vol. 43, issue 2, 107-122
We introduce expectations regarding the amount of exerted effort by males and females into the "standard" labor market equilibrium. Using a theoretical model, we show that the gender wage gap increases when the expected effect is incorporated into the model. Based on a survey, we find that there are inaccurate expectations regarding the amount effort exerted by males and females. We argue that biased expectations lead to paying females lower wages and a higher gender wage gap than should be expected on the basis of effort exerted. We suggest marketing females' efforts as a policy tool to counteract these biased expectations.
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Persistent link: https://EconPapers.repec.org/RePEc:taf:fosoec:v:43:y:2014:i:2:p:107-122
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