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Women receive lower monetary compensation than men in all occupations and across all ranks. For managers, this gender pay gap is substantially higher than in average working populations. The goal of this chapter is to enhance our understanding of the managerial gender pay gap and its particularities. We first outline the problem using archival evidence of the gaps in male and female managers’ pay around the world, considering the role of gender differences in human capital characteristics and the structural forces that lead to pay inequality. Then we present experimental evidence from psychological research in order to shed light on the underlying mechanisms that lead to gender disparities in managers’ pay. Considering the perspective of both pay allocators and receivers, we explore psychological processes such as the impact of gender stereotypes on biased evaluations of women’s performance and gendered moral standards, as well as the impact of stereotypes on gender differences in attitudes and negotiation behavior. Finally, we present suggestions for legislators, organizations, and women to prevent and counteract the gender pay gap in management, and we discuss potential pitfalls of such interventions. We conclude that gender dynamics affecting managerial pay are not straightforward. Therefore, research as well as practical interventions have to go beyond a mere consideration of gender differences in pay and negotiation behavior, and react upon a complex interaction of structural forces, pay allocators, and receivers.
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- The Gender Pay Gap: Particularities and Challenges in the Management Context
Dr. Clara Kulich
Dr. Moran Anisman-Razin
Dr. Tamar Saguy
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