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Market Expectations, Job Search and Gender Differences in Starting Pay

Peter Orazem, J. Werbel and J. McElroy

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: Search theory suggests that if a woman anticipates discriminatory treatment in the labor market, she will lower her reservation wage which would, in turn, lead to lower pay. This prediction is tested using a data set of graduating college seniors. Results show that women had lower starting-pay expectations, even for men and women with the same major, job-market information, and job-search strategies. Lower pay expectations led to lower pay outcomes for women. However, women who engaged more intensively in career planning had pay expectations and starting pay more in line with those of men.

Date: 2003-04-01
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (5)

Published in Journal of Labor Research, Spring 2003, vol. 24, pp. 307-321

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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:5190

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