Overconfidence and gender differences in wage expectations

Stephanie Briel, Aderonke Osikominu, Gregor Pfeifer, Mirjam Reutter and Sascha Satlukal

No 08-2020, Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences

Abstract: We analyze the impact of (over-)confidence on gender differences in expected starting salaries using elicited beliefs of prospective university students in Germany. According to our results, female students have lower wage expectations and are less overconfident than their male counterparts. Oaxaca-Blinder decompositions of the mean show that 7.7% of the gender gap in wage expectations is attributable to a higher overconfidence of males. Decompositions of the unconditional quantiles of expected salaries suggest that the contribution of gender differences in confidence to the gender gap is particularly strong at the bottom and top of the wage expectation distribution.

Keywords: Gender Pay Gap; Wage Expectations; Overconfidence; Decomposition Analyses; Unconditional Quantile Regressions (RIF-Regressions) (search for similar items in EconPapers)
JEL-codes: C21 D84 D91 J16 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-edu, nep-eur and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Overconfidence and Gender Differences in Wage Expectations (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hohdps:082020

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