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Competing by Default: A New Way to Break the Glass Ceiling

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  • Nisvan Erkal
  • Lata Gangadharan
  • Erte Xiao

Abstract

Leadership selection in organizations often requires candidates to actively choose to participate in the competition. We conjecture that such an Opt-in mechanism may contribute to the gender gap observed in leadership positions. We design an Opt-out mechanism where the default is to compete for a leadership position and individuals can opt out of the competition. Data from our experiments show that women are more likely to compete for leadership positions under the Opt-out mechanism and this effectively reduces the gender gap in competition. When given a choice between the Opt-in and Opt-out mechanisms, individuals are equally likely to choose either one. We conclude that the Opt-out mechanism can be an effective and feasible way to break the glass ceiling.

Suggested Citation

  • Nisvan Erkal & Lata Gangadharan & Erte Xiao, 2019. "Competing by Default: A New Way to Break the Glass Ceiling," Monash Economics Working Papers 04-18, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2018-04
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    File URL: https://www.monash.edu/business/economics/research/publications/publications2/0418Anewwaynizvan.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Glass ceiling; Gender inequality; Competition; Leadership; Defaults; Laboratory experiments;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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