Abstract

The present research identifies a subtle form of gender discrimination in the contracts provided to workers. Specifically, workers who pursue jobs atypical for their gender tend to be hired by the hour rather than offered fixed contracts, a risk-averse practice that reflects a lack of confidence about their future performance on the part of employers. In Study 1, a controlled experiment, male evaluators expressed uncertainty about a female employee in a counter-stereotypical job and preferred to pay her “as she goes.” Study 2 examined 99,567 contracts awarded by 9,297 employers in an online market for temporary labor, revealing that not only are female employees more often paid by the hour for stereotypically male work (e.g., computer programming), but male employees are more likely to be paid by the hour for stereotypically female work (e.g., customer service). These findings converge in support of a theory of stereotype-based uncertainty in contract decisions.

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