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ResearchPaper
2020

Overconfidence and gender differences in wage expectations

Abstract (English)

We analyze the impact of (over-)confidence on gender differences in expected start-ing salaries using elicited beliefs of prospective university students in Germany. According to our results, female students have lower wage expectations and are less overconfident than their male counterparts. Oaxaca-Blinder decompositions of the mean show that 7.7% of the gender gap in wage expectations is attributable to a higher overconfidence of males. Decompositions of the unconditional quantiles of expected salaries suggest that the contribution of gender differences in confidence to the gender gap is particularly strong at the bottom and top of the wage expectation distribution.

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Publication series

Hohenheim discussion papers in business, economics and social sciences; 2020,08

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Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics

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Language
English

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Classification (DDC)
330 Economics

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BibTeX

@techreport{Satlukal2020, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6544}, author = {Satlukal, Sascha and Reuter, Mirjam and Pfeifer, Gregor et al.}, title = {Overconfidence and gender differences in wage expectations}, year = {2020}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }