How competitiveness may cause a gender wage gap: Experimental evidence
We show that choices in competitive behavior may entail a gender wage gap. In our experiments, employees first choose a remuneration scheme (competitive tournament vs. piece rate) and then conduct a real effort task. Employers know the pie size the employee has generated, the remuneration scheme chosen, and the employee's gender. Employers then decide how the pie will be split, as in a dictator game. Whereas employers do not discriminate by gender when tournaments are chosen, they take substantially and significantly more from female employees who choose piece rate remuneration. A discriminatory wage gap occurs which cannot be attributed to employees' performance.