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Gender Differences in Negotiation: Can Interventions Reduce the Gap?

Author

Listed:
  • María P. Recalde

    (Department of Economics, University of Melbourne, Parkville, Australia)

  • Lise Vesterlund

    (Department of Economics, University of Pittsburgh, Pittsburgh, Pennsylvania, USA)

Abstract

Gender differences in negotiation are seen as contributing to the persistent gender gaps in labor market outcomes. We review the literature on interventions aiming to mute differences in negotiation and assess their effectiveness in reducing the gender pay gap. We present research on initiatives that aspire to increase how often and how women negotiate, as well as institutional changes that ban negotiations, ban requests for employee salary history, and improve wage transparency. Along with reviewing evidence on the effectiveness of these initiatives, we point to unintended consequences that warrant caution at implementation. The review makes clear that initial efforts to push women to negotiate more like men have shifted to alter instead the conditions of the negotiation. This shift results not only from wanting to consider policies that “fix the institutions” rather than “fixing the women,” but also from evidence that these interventions are more successful in securing pay equity.

Suggested Citation

  • María P. Recalde & Lise Vesterlund, 2023. "Gender Differences in Negotiation: Can Interventions Reduce the Gap?," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 633-657, September.
    • Handle: RePEc:anr:reveco:v:15:y:2023:p:633-657
    DOI: 10.1146/annurev-economics-092022-115353
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    Cited by:

    1. Menaka Hampole & Francesca Truffa & Ashley Wong, 2024. "Peer Effects and the Gender Gap in Corporate Leadership: Evidence from MBA Students," CESifo Working Paper Series 11295, CESifo.

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