Stereotype threat in salary negotiations is mediated by reservation salary

Abstract

Women are stereotypically perceived as worse negotiators than men, which may make them ask for less salary than men when under stereotype threat (Kray et al., 2001). However, the mechanisms of stereotype threat are not yet properly understood. The current study investigated whether stereotype threat effects in salary negotiations can be explained by motivational factors. A total of 116 business students negotiated salary with a confederate and were either told that this was diagnostic of negotiating ability (threat manipulation) or not. Measures of minimum (reservation) and ideal (aspiration) salary goals and regulatory focus were collected. The finding (Kray et al., 2001) that women make lower salary requests than men when under stereotype threat was replicated. Women in the threat condition further reported lower aspiration salary, marginally significantly lower reservation salary and less eagerness/more vigilance than men. Reservation salary mediated the stereotype threat effect, and there was a trend for regulatory focus to mediate the effect. Thus, reservation salary partly explains why women ask for less salary than men under stereotype threat. Female negotiators may benefit from learning that stereotype threat causes sex-differences in motivation.