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Negotiating the Gender Wage Gap

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  • Stevens, Katrien
  • Whelan, Stephen

Abstract

There is some evidence that gender differences exist in the propensity to negotiate and outcomes from negotiation. Evidence from the psychology and management literatures suggest that relative to males, females are less likely to initiate negotiation and in the event of negotiation, ask for and receive less. This paper examines the propensity of males and females to negotiate over pay, the wage outcomes resulting from negotiation and its impact on the gender wage gap in a non-experimental setting. Using a unique Australian dataset we find evidence that females are less likely than males to have the opportunity to negotiate over pay in their jobs. However, conditional on the opportunity to negotiate, they are no less likely to actually negotiate their pay. Further, while negotiation is associated with higher wage outcomes, females do not fare worse than males in the event of negotiation.

Suggested Citation

  • Stevens, Katrien & Whelan, Stephen, 2016. "Negotiating the Gender Wage Gap," Working Papers 2016-19, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2016-19
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    Cited by:

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    2. Eunice S. Han, 2024. "How did the COVID‐19 pandemic affect men's and women's returns to unionization?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(2), pages 172-204, April.
    3. Eunice S. Han, 2020. "The Effects of Teachers’ Unions on the Gender Pay Gap among U.S. Public School Teachers," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(4), pages 563-603, October.
    4. Sylvain Chareyron & Mathilde Leborgne & Yannick L’Horty, 2021. "Les écarts de rémunération au recrutement des femmes et des hommes : une investigation en entreprise," TEPP Research Report 2021-06, TEPP.
    5. Elizabeth J. Casabianca & Alessia Lo Turco & Claudia Pigini, 2020. "Equal Pay for Equal Task: Assessing Heterogeneous Returns to Tasks across Genders," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(2), pages 197-239, April.

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    Keywords

    negotiation; gender; wage differentials; labor market;
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