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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

Abstract: 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.

Date: 2014
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DOI: 10.1080/07360932.2012.709317

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