Gender differences in tournament and flat-wage schemes: An experimental study |
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| Institution: | 1. Department of Economics, University of Rennes 1, France;2. CIRANO, Montreal, Canada;3. Chair of microeconomics, University of Göttingen, Germany;1. Department of Economics, University of Auckland, New Zealand;2. Thailand Development Research Institute, Thailand;1. New Zealand Experimental Economics Laboratory, Department of Economics and Finance, University of Canterbury, New Zealand;2. Macquarie Graduate School of Management in Sydney, Australia;3. University of Economics in Bratislava, Slovakia;1. MPI of Economics, Jena, Germany;2. School of Social Sciences, University of Trento, Italy;3. Faculty of Economics and Social Sciences, University of Agder, Norway;4. DEM-CEEL, University of Trento, Italy;1. Department of Economics, University of Southampton, Southampton SO17 1BJ, United Kingdom;2. Department of Economics, Florida State University, 113 Collegiate Loop, Bellamy 288, Tallahassee, FL 32306, United Kingdom;3. Department of Economics, University of Minnesota, 1925 Fourth Str. S., 4-149 Hanson Hall, Minneapolis, MN 55455, United Kingdom;1. Department of Economics, University of Copenhagen, Øster Farimagsgade 5, 1353 Copenhagen, Denmark;2. Department of Economics, Innsbruck University, Universitätsstrasse 15, 6020 Innsbruck, Austria |
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| Abstract: | We present a new experiment that explores gender differences in both performance and compensation choices. While most of the previous studies have focused on tournament vs. piece-rate schemes, the originality of our study consists in examining the gender gap in the context of a flat wage scheme. Our data indicate that females exert a significantly higher effort than men in fixed payment schemes. We find however no gender difference in performance under the tournament scheme, due to a combination of two effects. On the one hand, men more significantly increase their effort when switching from a flat wage to a tournament scheme. On the other hand, when switching from the flat wage to a tournament scheme, women have less margin to increase performance since their effort was already relatively high with a flat wage. We also find that females are more likely than males to choose a flat-wage scheme than a tournament. This gap however narrows dramatically when feedback on previous experience is provided. |
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| Keywords: | Experiment Gender differences Tournament scheme Flat-wage scheme |
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