Gender differences in reservation wages in search experiments

B-Tier
Journal: Labour Economics
Year: 2025
Volume: 94
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Women report setting lower reservation wages than men in survey data. We show that women set reservation wages that are 14 to 18 percent lower than men's in laboratory search experiments that control for factors not fully observed in surveys such as offer distributions and outside options. This gender gap—which exists even controlling for overconfidence, preferences, personality, and intelligence—leads women to spend less time searching than men while accepting lower wages. More risk tolerant women set reservation wages that are too low early in search relative to theoretically optimal reservation wages given their risk preferences, reducing their earnings.

Technical Details

RePEc Handle
repec:eee:labeco:v:94:y:2025:i:c:s0927537125000259
Journal Field
Labor
Author Count
2
Added to Database
2026-01-26