Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223959 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13517
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
gender pay gap
wage expectations
overconfidence
decomposition analyses
unconditional quantile regressions (RIF-Regressions)
JEL: 
J16
D84
D91
C21
Document Type: 
Working Paper

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