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Competitiveness and the gender gap among young business professionals

Author

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  • Zingales, Luigi
  • Sapienza, Paola
  • Reuben, Ernesto

Abstract

Using an incentivized measure of test for competition, this paper investigates whether this taste explains subsequent gender differences in earnings and industry choice in a sample of high-ability MBA graduates. We find that ?competitive? individuals earn 9% more than their less competitive counterparts do. Moreover, gender differences in taste for competition explain around 10% of the overall gender gap. We also find that competitive individuals are more likely to work in high-paying industries nine years later, which suggests that the relation between taste for competition and earnings persists in the long run. Lastly, we find that the effect of taste for competition emerges over time when MBAs and firms interact with each other.

Suggested Citation

  • Zingales, Luigi & Sapienza, Paola & Reuben, Ernesto, 2015. "Competitiveness and the gender gap among young business professionals," CEPR Discussion Papers 10924, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10924
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    More about this item

    Keywords

    Business career; Gender differences; Gender gap; Taste for competition;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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