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Signaling confidence

Author

Listed:
  • Demiral, Elif E.
  • Mollerstrom, Johanna

Abstract

We study gender differences in confidence in an experimental hiring market, focusing on how signaling confidence affects the likelihood of being hired. We document that moderate (versus low) levels of confidence enhance the probability of being hired, while excessive confidence, characterized by high performance estimates and high certainty, diminishes employment prospects. Men display greater levels of confidence than women, and this gender gap widens in forward-looking scenarios, where performance estimates are provided ex ante rather than ex post. These findings provide a cautionary reminder of the potential negative consequences of signaling excessive confidence. Hence, encouraging both men and women to signal performance predictions that are aligned with reality instead of simply advising women to be more confident may well be a safer way to foster equity in labor market outcomes.

Suggested Citation

  • Demiral, Elif E. & Mollerstrom, Johanna, 2024. "Signaling confidence," Journal of Economic Behavior & Organization, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:jeborg:v:226:y:2024:i:c:s016726812400297x
    DOI: 10.1016/j.jebo.2024.106691
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    References listed on IDEAS

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    More about this item

    Keywords

    gender; confidence; employment; experiment;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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