Do Women Ask?

Abstract

Females typically earn less than males. The reasons are not fully understood. This paper re‐examines the idea that women “don't ask,” which potentially assigns part of the responsibility for the gender pay gap onto female behavior. Such an account cannot readily be tested with standard datasets. This paper is the first to be able to use matched employer–employee data in which workers are questioned about their asking behavior. It concludes that males and females ask equally often for promotions and raises. The paper's empirical results suggest, however, that while women do now ask they “don't get.”

Negotiating the Gender Wage Gap

“…However, there is a clear pattern in tenure with the employer, where individuals with tenure of less than one year are most likely to report having the opportunity to negotiate over pay. Artz, Goodall, and Oswald () found a similar relationship between job tenure and whether Australian workers’ wages are negotiable. There is some evidence that the opportunity to negotiate is inversely related to the individual's level of education, though jobs which require higher levels of skill are associated with a significantly greater propensity on the part of the respondent to report having the opportunity to negotiate.…”

“…In comparison, part‐time workers and those employed in the public sector are substantially less likely to report having the opportunity to negotiate over pay. Artz, Goodall, and Oswald () also found that wages are increasingly likely to be negotiable as the number of hours worked rises.…”

“…In addition, we include descriptors of the job such as part‐time status, skill level, occupation, and responsibilities associated with the position. Existing evidence indicates that individuals in part‐time jobs are less likely to have negotiated over wages, while higher skilled and managerial roles are more likely to be associated with wage bargaining (Artz, Goodall, and Oswald , Brenzel, Gartner, and Schnabel ; Hall and Krueger ). Sector of employment and occupation are also likely to be closely related to whether the opportunity to negotiate is available, with posted or non‐negotiable wages being much more common in the public sector.…”

“…Blackaby, Booth, and Frank () found a strong correlation between the number of outside offers and earnings for male academics but not for females, which may be consistent with a lower willingness of females to bargain or negotiate. In a recent study of Australian data, Artz, Goodall, and Oswald () found that women and men are equally likely to ask for a pay raise or promotion, but women are less likely to receive a pay increase.…”

“…Among those individuals who report having the opportunity to negotiate over pay, around 37 percent actually do so. As a point of comparison, Artz, Goodall, and Oswald () reported that 39 percent of employees in their sample of Australian workers from 2013–2014 indicated that pay is a “negotiated amount with the employer.” A significantly higher proportion of men in our sample indicate that they have the opportunity to negotiate pay compared to women (49 and 35 percent respectively, in 2011). International evidence suggests that the propensity to negotiate is similar in other countries.…”