Abstract
Previous research has shown that gender pay differences in the labor market may be caused by women’s reluctance to initiate salary negotiations, which is often influenced by gender-related social norms and self-perceived gender identity. In the real world, others in work environments can know “who has asked.” In a laboratory experiment, we manipulated whether the decision to initiate salary negotiations was publicly observable. We found that in a context in which negotiation is not costly, women and men showed no difference in initiating salary negotiations. When asked to publicly express their willingness to negotiate salaries, a moderately lower number of women stepped up, an effect that was not significant for men. Furthermore, women tend to tie salary negotiation decisions to their self-perceived performance even when pay raises are not bound to performance. In contrast, men were not impacted by this factor.
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