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Market Expectations, Job Search and Gender Differences in Starting Pay

Author

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  • Orazem, Peter
  • Werbel, J.
  • McElroy, J.

Abstract

Search theory suggests that if a woman anticipates discriminatory treatment in the labor market, she will lower her reservation wage which would, in turn, lead to lower pay. This prediction is tested using a data set of graduating college seniors. Results show that women had lower starting-pay expectations, even for men and women with the same major, job-market information, and job-search strategies. Lower pay expectations led to lower pay outcomes for women. However, women who engaged more intensively in career planning had pay expectations and starting pay more in line with those of men.

Suggested Citation

  • Orazem, Peter & Werbel, J. & McElroy, J., 2003. "Market Expectations, Job Search and Gender Differences in Starting Pay," Staff General Research Papers Archive 5190, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5190
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    Cited by:

    1. Ana Fernandes & Martin Huber & Giannina Vaccaro, 2021. "Gender differences in wage expectations," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-24, June.
    2. Barbara F. Reskin & Denise D. Bielby, 2005. "A Sociological Perspective on Gender and Career Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 71-86, Winter.
    3. Caviris, Nicole Stefanie, 2014. "Educational attainment, college major choice, the gender wage gap, and average starting salaries of college graduates in the United States, 1967-2011," ISU General Staff Papers 201401010800004865, Iowa State University, Department of Economics.
    4. Sam Jones & Ricardo Santos & Gimelgo Xirinda, 2020. "Misinformed, mismatched, or misled?: Explaining the gap between expected and realized graduate earnings in Mozambique," WIDER Working Paper Series wp-2020-47, World Institute for Development Economic Research (UNU-WIDER).

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