Research report 2018 - Max Planck Institute for Research on Collective Goods

How do equal opportunities on labor markets relate to gender differences in the willingness to compete? Insights from behavioral economics

Authors
Sutter, Matthias
Departments
Experimental Economics Group
Summary
Gender differences in the willingness to compete may contribute to differences in wages and career advancement of men and women. Policy interventions, such as quotas, come with unintended side-effects. Loukas Balafoutas, Helena Fornwagner and I have proposed priming subjects with power as an instrument to contain gender differences in the willingness to compete. We show that priming with high power closes the gender gap, in particular because it makes competition entry decisions more realistic and reduces the level of risk tolerance among male participants.

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