Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207218 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7827
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper presents evidence from a large-scale study on gender differences in expected wages before labor market entry. Based on data for over 15,000 students, we document a significant and large gender gap in wage expectations that closely resembles actual wage differences, prevails across subgroups, and along the entire distribution. To understand the underlying causes and determinants, we relate expected wages to sorting into majors, industries, and occupations, child-rearing plans, perceived and actual ability, personality, perceived discrimination, and negotiation styles. Our findings indicate that sorting and negotiation styles affect the gender gap in wage expectations much more than prospective child-related labor force interruptions. Given the importance of wage expectations for labor market decisions, household bargaining, and wage setting, our results provide an explanation for persistent gender inequalities.
Subjects: 
subjective wage expectations
gender gap
negotiation styles
JEL: 
D81
D84
I21
I23
J13
J30
Document Type: 
Working Paper
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