Gender differences in willingness to compete: The role of public observability

Thomas Buser,Eva Ranehill,Roel Van Veldhuizen

doi:10.1016/j.joep.2021.102366

Abstract

A recent literature emphasizes that gender differences in the labor market may in part be driven by a gender gap in willingness to compete. However, whereas experiments in this literature typically investigate willingness to compete in private environments, real world competitions often have a more public nature, which introduces potential social image concerns. If such image concerns are important, and men and women differ in the degree to which they want to be seen as competitive, making tournament entry decisions publicly observable may further exacerbate the gender gap. We test this prediction using a laboratory experiment (N = 784) that varies the degree to which the decision to compete, and its outcome, is publicly observable. We find that public observability does not alter the magnitude of the gender gap in willingness to compete in an economically or statistically significant way.

Highlights

Gender differences in labor market outcomes remain a primary policy concern
To 5, we explore whether the gender gap in the likelihood of choosing competition is due to gender differences in performance, confidence, and risk preferences
To 5, we show that gender differences in risk attitudes and confidence can at least partially explain this gender gap in compensation scheme choice

Summary

Introduction

Gender differences in labor market outcomes remain a primary policy concern. Women have lower labor market participation, are underrepresented in positions of power, and earn lower wages even when occupying similar positions as men. Niederle, 2016, for an overview of this literature). A large literature in experimental economics documents that men are more willing to seek out competitive environments than women This gender difference in willingness to compete may explain why women are less likely to be found in top positions since obtaining highly remunerated and prestigious jobs often requires competing for them. Applying for promotions or new positions, and bargaining for higher wages, can be thought of as competitive activities.

Results

Discussion

Conclusion