Working Paper: NBER ID: w28820
Authors: Patricia Corts; Jessica Pan; Ernesto Reuben; Laura Pilossoph; Basit Zafar
Abstract: This paper investigates gender differences in the job search process, both in the field and lab. First, we collect rich information on initial job offers and acceptances from undergraduates of Boston University's Questrom School of Business. We document two novel empirical facts: (1) there is a clear gender difference in the timing of job offer acceptance, with women accepting jobs substantially earlier than men, and (2) there is a clear gender earnings gap in accepted offers, which narrows in favor of women over the course of the job search period. To rationalize these patterns, we develop a job search model that incorporates gender differences in risk aversion and over-optimism about prospective offers. We validate the model's assumptions and predictions using the survey data, and present empirical evidence that the job search patterns in the field can be partly explained by the greater risk aversion displayed by women and the higher levels of over-optimism displayed by men. Next, we replicate the findings from the field in a specially-designed laboratory experiment that features sequential job search, and provide direct evidence on the purported mechanisms. Our findings highlight the importance of risk preferences and beliefs for gender differences in job-finding behavior, and consequently, early-career wage gaps among the highly-skilled.
Keywords: gender differences; job search; earnings gap; risk aversion; overoptimism
JEL Codes: D83; D91; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| gender (J16) | timing of job acceptance (M51) |
| risk aversion in women (J16) | timing of job acceptance (M51) |
| gender (J16) | gender earnings gap (J31) |
| risk aversion in women (J16) | gender earnings gap (J31) |
| timing of job acceptance (M51) | gender earnings gap (J31) |
| psychological attributes (D91) | job search behavior (J68) |
| gender (J16) | reservation wages (R21) |