A Field Experiment on Salary Negotiations

Last registered on July 28, 2023
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Pre-Trial

Trial Information

General Information

Title
A Field Experiment on Salary Negotiations
RCT ID
AEARCTR-0011491
Initial registration date
July 21, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
July 28, 2023, 10:49 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

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Primary Investigator

Name
Ricardo Perez-Truglia
Affiliation
UC Berkeley
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Other Primary Investigator(s)

PI Name
Zoe Cullen
PI Affiliation
Harvard Business School
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PI Name
Bobak Pakzad-Hurson
PI Affiliation
Brown University
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Additional Trial Information

Status
On going
Start date
2023-05-23
End date
2024-12-31
Keywords
Gender, Labor
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We study how individuals negotiate their job offers. The goal of the study is twofold. First, we aim to provide a descriptive analysis of how negotiations unfold and whether there are any differences based on gender. The second part of the study is experimental, involving the cross-randomization of two treatments in the baseline survey
External Link(s)

Registration Citation

Citation
Cullen, Zoe, Bobak Pakzad-Hurson and Ricardo Perez-Truglia. 2023. "A Field Experiment on Salary Negotiations." AEA RCT Registry. July 28. https://doi.org/10.1257/rct.11491-1.0
Sponsors & Partners

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Experimental Details

Interventions

Intervention(s)
We recruit individuals from the tech sector who are on the job market. They either are looking for a job, or they already have a job but are looking for offers from other companies. Our survey consists of two waves: a baseline survey and a follow-up survey. These surveys collect rich information on the job market history of these employees: whether they have a job already, whether they have interviews with other companies, whether they receive offers, whether they attempted to negotiate those offers, whether the terms of the offers changed, and so on and so forth. The goal of the study is twofold. First, we want to provide descriptive analysis on how negotiations unravel and whether there are differences by gender. The second part of the study is experimental, by cross-randomizing two treatments in the baseline survey.
Intervention Start Date
2023-05-24
Intervention End Date
2023-08-25

Primary Outcomes

Primary Outcomes (end points)
Some of the outcomes of interest are measured in the baseline survey:
1) The intention to negotiate future offers and expected success.
And for the negotiation nudge:
2) The willingness to pay for the coaching services.
3) The take-up of the coaching offer (among those who are given that option).
The rest of the outcomes of interest are measured in the follow-up survey:
4) Whether the subject had interviews and/or received offers.
5) Conditional on receiving an offer, the probability of attempting to negotiate the offer.
6) Conditional on receiving an offer, the final compensation terms.
7) Conditional on receiving an offer, the probability of accepting the offer and the quality of the employment match.
Primary Outcomes (explanation)
We measure the outcomes in the baseline and follow-up surveys. Additionally, if possible, we will complement the survey data with other datasets: e.g., data from the individual's profiles in LinkedIn, data provided by the coaches at levels.fyi.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We cross randomize our two interventions (information and coaching services).
Experimental Design Details
Not available
Randomization Method
Randomization is done by a computer.
Randomization Unit
Randomization occurs at the level of the individual participant (i.e., job candidate).
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
We plan to recruit at least 500 participants.
Sample size: planned number of observations
It is difficult to predict the final sample size, as it depends on a lot of factors that are largely out of our control (e.g., the response rates to the baseline and follow up surveys). We plan to recruit at least 500 participants, but will attempt to recruit more if possible.
Sample size (or number of clusters) by treatment arms
Within each treatment arm, each participant has a 50% chance of being assigned to the treatment. So there is a 25% change that the subject is assigned to the information treatment, a 25% chance that the subject is assigned to the coaching service treatment, a 25% chance that the subject is not assigned to any treatments, and a 25% chance that the subject is assigned to both treatments.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
The minimum detectable effects are different for different outcomes of interest, and they depend on a number of assumptions that are difficult to predict (e.g., the share of subjects who take-up the coaching services when provided with the special offer). The goal of recruiting at least 500 subjects is informed by the power calculations. For instance, under conservative assumptions, we expect to be able to detect effects of around 5 percentage points in the probability of negotiating.
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
Harvard Business School
IRB Approval Date
2023-05-19
IRB Approval Number
IRB23-0556
Analysis Plan