Citation

Discussion Paper Details

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Title: Overconfidence and Gender Differences in Wage Expectations

Author(s): Stephanie Briel, Aderonke Osikominu, Gregor Pfeifer, Mirjam Reutter and Sascha Satlukal

Publication Date: July 2020

Keyword(s): Decomposition Analyses, Gender pay gap, overconfidence, Unconditional Quantile Regressions (RIF-Regressions) and wage expectations

Programme Area(s): Labour Economics

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.

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Bibliographic Reference

Briel, S, Osikominu, A, Pfeifer, G, Reutter, M and Satlukal, S. 2020. 'Overconfidence and Gender Differences in Wage Expectations'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15093