NEW: Salary, Gender and the Social Cost of Haggling

A new study by Linda C. Babcock and Lei Lai from Carnegie Mellon University and Hannah Riley Bowles from the Kennedy School of Government may explain why women’s salaries are still lower than those of their male counterparts. Traditionally, the gender gap in salaries is considered to be the result of men’s aggressivity and women’s passivity. Therefore, according to this theory, women could close the pay gap through assertiveness training.

Babcock, Lai, and Bowles, however, found that the gender gap stems from differences in the way men and women negotiate. Findings indicated that there is a social risk involved in negotiating. The study showed that both men and women perceived women who asked for more as being “less nice” and subtly penalized these women. Men tended to penalize women who asked for more money, but did not penalize other men for doing the same. Women tended to penalize both men and women who negotiated.

Results of this study explain that the social risk of negotiating is higher for women than men; therefore, women are less likely to negotiate salaries because they will be perceived less favorably by their superiors.

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