We introduce expectations regarding the amount of exerted effort by males and females into the “standard” labor market equilibrium. Using a theoretical model, we show that the gender wage gap increases when the expected effect is incorporated into the model. Based on a survey, we find that there are inaccurate expectations regarding the amount effort exerted by males and females. We argue that biased expectations lead to paying females lower wages and a higher gender wage gap than should be expected on the basis of effort exerted. We suggest marketing females' efforts as a policy tool to counteract these biased expectations.
|Original language||English GB|
|Number of pages||16|
|Journal||Forum for Social Economics|
|State||Published - 2014|