Intervention(s)
Persistent gender inequalities remain a challenge in economic outcomes. This issue is particularly evident in the labor market, where women consistently earn less than men and are notably underrepresented in senior leadership roles. While factors like occupational segregation and discrimination contribute to these disparities, recent research has shifted focus to exploring how differences in behavioral traits between genders might provide additional insights (Blau and Kahn, 2017; Bertrand, 2018). Among these traits, the willingness to compete stands out as a key area of study.
In a groundbreaking study, Niederle and Vesterlund (2007) found that men are significantly more inclined to compete than women, which may contribute to slower career progression and the enduring wage gap women face. In a tournament entry experiment, Niederle and Vesterlund had women and men complete a simple math task for three rounds. The first round paid participants a fixed payment for each problem they solved correctly. In the second round, they were matched in random groups of four and completed the same task but with a competitive twist: they could earn four times the fixed payment if they outperformed their group members and nothing if they didn't. The third round is where the participants get to choose how they want to get paid: Piece rate (as in round 1) or tournament (as in round 2 but compared to others' round 2 scores). In such an experimental condition, which has been replicated numerous times, women are found to be less likely than men to choose the competitive tournament payment. This phenomenon is not confined to laboratory settings but is echoed in real-life scenarios, further evidenced by subsequent research (Buser et al., 2014; Rueben et al., 2015).
Various replications of this study consistently show women being less likely to choose the competitive payment scheme. Recent research highlights that this competitiveness gap especially surfaces in contexts where the risk and confidence differences across genders are prominent (Gillen et al., 2019; Charness et al.,2022; Van Veldhuizen, 2022). Women's reluctance to compete often stems from a greater risk aversion, lower confidence in their abilities, and a tendency to undervalue their performance relative to others.
Our project seeks to examine interventions that could narrow the gender competitiveness gap. Specifically, we introduce an Outside Option treatment, allowing participants to revise their payment choice selection after the task completion, providing the flexibility to switch between the piece rate and a competitive pay scheme. While the control treatment closely follows the Niederle and Vesterlund (2007) design, our Outside Option treatment will allow participants to revise their choices post-decision and after completion of the round. Specifically, while deciding whether to compete, participants will know they can switch back to a fixed-rate pay scheme if they initially opted for competition, or vice versa. We expect this flexibility in decision-making will mitigate the effects of risk aversion and confidence disparities, contributing to a narrowing of the gender gap in tournament entry. In sum, this study aims to investigate whether providing an outside option alongside traditional tournament entry choices can narrow the gender competitiveness gap.