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Asians don't ask? Relational concerns, negotiation propensity, and starting salaries
1MIT Sloan School of Management.
The Journal of Applied Psychology
|May 5, 2022
Summary
The "model minority" myth overlooks disparities among Asian ethnic groups. East and Southeast Asians face lower starting salaries than South Asians and Whites, often due to less salary negotiation.
Area of Science:
- Social Psychology
- Organizational Behavior
- Economics
Background:
- Asians in the U.S. are often stereotyped as a
- model minority
- due to perceived economic success.
- This perception masks significant economic disparities within Asian ethnic groups.
Purpose of the Study:
- To investigate starting salary differences among distinct Asian ethnic groups (East, Southeast, and South Asians) in the U.S. job market.
- To examine the role of negotiation propensity and relational concerns in explaining these salary gaps.
- To identify boundary conditions, such as industry type, that may influence salary disparities.
Main Methods:
- Analysis of MBA graduate employment data across 19 class years, comparing starting salaries by ethnicity.
- Statistical mediation analysis to assess the role of negotiation in salary differences.
- Examination of industry as a moderator, comparing consulting (non-negotiable salaries) versus non-consulting roles.
- Replication of findings in a non-MBA sample, incorporating bargaining power variables.
Main Results:
- While overall Asian salaries appeared comparable to White salaries, East/Southeast Asians earned significantly less than South Asians and Whites.
- Negotiation propensity mediated the salary gap, with East/Southeast Asians less likely to negotiate.
- The salary gap was absent in consulting roles but present in non-consulting roles, where negotiation is more common.
- The estimated annual salary gap between East/Southeast Asians and South Asians in non-consulting roles was $4,002.
Conclusions:
- The monolithic view of Asian economic prosperity is inaccurate, obscuring critical differences between ethnic subgroups.
- Negotiation behavior, influenced by cultural factors like relational concerns, significantly impacts career earnings for Asian professionals.
- Understanding intra-group differences is crucial for addressing workplace inequalities and developing targeted support.
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