Do Women Loose Out Because Men Man Up?

Abstract:

We examine whether a gender gap results when subjects share the joint fruits of their labor in a gender-neutral setting, where negotiation skills or threatening behavior does not matter. We establish that on average men insist more on getting a larger share than women. This translates into a sizable gender pay gap that is not driven by known factors such as a different attitude toward risk, or a different willingness to engage in negotiations. If the allocation of the larger share is no longer determined jointly but individually, the difference in behavior and pay vanishes. The results are qualitatively confirmed if subjects can condition their decision on their performance.