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Gender Differences in Negotiation and Policy for Improvement

Author

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  • Maria Recalde
  • Lise Vesterlund

Abstract

Men more than women succeed when negotiating over labor-market outcomes, and gender differences in negotiation likely contribute to the gender wage gap and to horizontal and vertical segregation in the labor market. We review the evidence on the many initiatives that have been put in place to reduce the effect of gender differences in negotiation. Categorizing these as either ‘fix-the-women’ or ‘fix-the-institutions’ initiatives we find serious challenges to the former. Women do not appear to be broken and encouraging them to negotiate more and differently often backfires. The evidence suggests that ‘fix-the-institution’ initiatives are more effective in reducing gender differences in outcomes. Concerns of adverse effects of banning negotiations or salary history requests have not materialized, and preliminary evidence points to reductions in the gender differences in negotiation outcomes. The strongest evidence on effectiveness in narrowing gender disparities is found for policies that increase transparency. Numerous studies find that gender differences in negotiation diminish when it is clear what to expect from the negotiation and suggest that initiatives which improve transparency are likely to help equalize opportunities at the bargaining table.

Suggested Citation

  • Maria Recalde & Lise Vesterlund, 2020. "Gender Differences in Negotiation and Policy for Improvement," NBER Working Papers 28183, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28183
    Note: LS PE
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    Cited by:

    1. Hao, Xuejing & Hu, Feng & Li, Zhu, 2024. "Entrepreneur-investor gender match effects in startup funding: Evidence from an entrepreneurial-themed reality TV show in China," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 811-832.
    2. Andrzej Baranski & D.J. da Cunha Batista Geraldes & Ada Kovaliukaite & James Tremewan, 2021. "Experiment on Gender Representation in Majoritarian Bargaining," Working Papers 2102, Utrecht School of Economics.
    3. Steffen Andersen & Julie Marx & Kasper Meisner Nielsen & Lise Vesterlund, 2021. "Gender Differences in Negotiation: Evidence from Real Estate Transactions," The Economic Journal, Royal Economic Society, vol. 131(638), pages 2304-2332.
    4. Noor Kumar & Uyseok Lee & Matt Lowe & Olaitan Ogunnote & Matthew Lowe, 2024. "Internal Versus Institutional Barriers to Gender Equality: Evidence from British Politics," CESifo Working Paper Series 11358, CESifo.
    5. Jetter, Michael & Stockley, Kieran, 2021. "Gender Match and the Gender Gap in Venture Capital Financing: Evidence from Shark Tank," IZA Discussion Papers 14069, Institute of Labor Economics (IZA).
    6. Soumitra Shukla, 2021. "Between College and That First Job: Designing and Evaluating Policies for Hiring Diversity," International Finance Discussion Papers 1331, Board of Governors of the Federal Reserve System (U.S.).
    7. Michael Jetter & Kieran Stockley, 2023. "Gender match and negotiation: evidence from angel investment on Shark Tank," Empirical Economics, Springer, vol. 64(4), pages 1947-1977, April.
    8. Karine Lamiraud & Julien Patris & Radu Vranceanu, 2023. "Experimental evidence on the value of time and structure in market negotiations," Working Papers hal-03989514, HAL.
    9. Andrzej Baranski & Diogo Geraldes & Ada Kovaliukaite & James Tremewan, 2024. "An Experiment on Gender Representation in Majoritarian Bargaining," Management Science, INFORMS, vol. 70(10), pages 6622-6636, October.
    10. Gauri Kartini Shastry & Olga Shurchkov, 2024. "Reject or revise: Gender differences in persistence and publishing in economics," Economic Inquiry, Western Economic Association International, vol. 62(3), pages 933-956, July.
    11. Jens Mazei & Julia B. Bear & Joachim Hüffmeier, 2022. "Avoiding Backlash or Proving One’s Manhood? Beliefs About Gender Differences in Negotiation," Group Decision and Negotiation, Springer, vol. 31(1), pages 81-110, February.

    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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