Behavioral Economics for Leaders

CHAPTER 25An Argument for Gender Quotas in Employment: They Can Help Attract Highly Qualified Women

Research in behavioral economics shows that there are big differences between the genders when it comes to the willingness to compete with others. Why is this, what significance does it have for the labor market, and what does it mean for the divisive discussion about gender quotas?

Rebecca is sitting in front of the screen in a computer lab at her university. She is one of several hundred participants in an academic study that examines the competitive attitudes of men and women. Rebecca's task is to add five two‐digit numbers. She has a total of three minutes to complete as many additions (of five double‐digit numbers) as possible. No extra help outside of a pencil and paper is allowed. Before Rebecca begins with the task, she must decide how she wants to be paid by the people doing the study. She has two options. In the first option, she will receive $0.50 for every correctly solved addition. In the second option, she will get $1.50 for every correctly solved addition if she, in a group of six, was one of the two best participants with the most correct solutions. The group of six includes three men and three women (among them Rebecca). If Rebecca is not one of the two best people in the second payment option, she won't get any money. Thus, the second option is riskier but also more financially attractive if Rebecca is one of the best. Though Rebecca has always been quite good ...