Market expectations, job search, and gender differences in starting pay

Search theory suggests that if a woman anticipates discriminatory treatment in the labor market, she will lower her reservation wage which would, in turn, lead to lower pay. This prediction is tested using a data set of graduating college seniors. Results show that women had lower starting-pay expec...

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Published in:Journal of labor research Vol. 24; no. 2; pp. 307 - 321
Main Authors: Orazem, Peter F., Werbel, James D., McElroy, James C.
Format: Journal Article
Language:English
Published: New York Transaction Publishers 01.04.2003
Springer Nature B.V
Series:Journal of Labor Research
Subjects:
ISSN:0195-3613, 1936-4768
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Abstract Search theory suggests that if a woman anticipates discriminatory treatment in the labor market, she will lower her reservation wage which would, in turn, lead to lower pay. This prediction is tested using a data set of graduating college seniors. Results show that women had lower starting-pay expectations, even for men and women with the same major, job-market information, and job-search strategies. Lower pay expectations led to lower pay outcomes for women. However, women who engaged more intensively in career planning had pay expectations and starting pay more in line with those of men.
AbstractList Search theory suggests that if a woman anticipates discriminatory treatment in the labor market, she will lower her reservation wage which would, in turn, lead to lower pay. This prediction is tested using a data set of graduating college seniors. Results show that women had lower starting-pay expectations, even for men and women with the same major, job-market information, and job-search strategies. Lower pay expectations led to lower pay outcomes for women. However, women who engaged more intensively in career planning had pay expectations and starting pay more in line with those of men.
Search theory suggests that if a woman anticipates discriminatory treatment in the labor market, she will lower her reservation wage which would, in turn, lead to lower pay. This prediction is tested using a data set of graduation college seniors. Results show that women had lower starting-pay expectations, even for men and women with the same major, job-market information, and job-search strategies. Lower pay expectations led to lower pay outcomes for women. However, women who engaged more intensively in career planning had pay expectations and starting pay more in line with those of men.
Author Orazem, Peter F.
McElroy, James C.
Werbel, James D.
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  givenname: James C.
  surname: McElroy
  fullname: McElroy, James C.
BackLink http://econpapers.repec.org/article/trajlabre/v_3a24_3ay_3a2003_3ai_3a2_3ap_3a307-321.htm$$DView record in RePEc
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  doi: 10.2307/146120
– volume-title: Empirical Labor Economics: The Search Approach
  year: 1991
  ident: BF02701795_CR10
  doi: 10.1093/oso/9780195059366.001.0001
– volume: 38
  start-page: 65
  year: 1991
  ident: BF02701795_CR18
  publication-title: Journal of Vocational Behavior
  doi: 10.1016/0001-8791(91)90018-H
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Snippet Search theory suggests that if a woman anticipates discriminatory treatment in the labor market, she will lower her reservation wage which would, in turn, lead...
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StartPage 307
SubjectTerms Career development
Career planning
College students
Expectations
Gender differences
Job hunting
Labor market
Search strategies
Studies
Women
Title Market expectations, job search, and gender differences in starting pay
URI http://econpapers.repec.org/article/trajlabre/v_3a24_3ay_3a2003_3ai_3a2_3ap_3a307-321.htm
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Volume 24
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