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Gender differences in wage expectations.

Ana Fernandes1,2, Martin Huber2,3, Giannina Vaccaro4,5

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Summary
This summary is machine-generated.

Both male and female students overestimate future earnings, with men showing overconfidence when informed about actual wages. Gender differences in wage expectations are reduced but not eliminated by personal and professional factors.

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Area of Science:

  • Economics
  • Sociology
  • Higher Education Studies

Background:

  • Wage expectations significantly influence career choices and educational pursuits.
  • Understanding gender disparities in economic outlooks is crucial for policy and individual guidance.

Purpose of the Study:

  • To investigate the rationality of wage expectations among Swiss higher education students.
  • To analyze the impact of personal and professional factors on gender differences in wage expectations.

Main Methods:

  • Utilized a survey of students at two Swiss institutions.
  • Employed causal mediation analysis to assess the influence of various control variables.
  • Compared expected wages with actual wages of similar graduates.

Main Results:

  • Both male and female students tend to overestimate their future wages.
  • Males exhibit overconfidence when presented with information on realized wages.
  • Personal and professional factors partially mediate, but do not fully explain, gender-based wage expectation gaps.

Conclusions:

  • Wage expectation rationality is limited for both genders, with males displaying higher overconfidence.
  • While personal and professional considerations reduce gender disparities, a significant unexplained gender effect on wage expectations persists.