You can't end wars by simply declaring peace. “Inclusive security” rests on the principle that fundamental social changes are necessary to prevent renewed hostilities. Women have proven time and again their unique ability to bridge seemingly insurmountable divides. So why aren’t they at the negotiating table?
Research suggests that women are more likely than men to pass over opportunities to negotiate for higher compensation. Studies from the laboratory, surveys, and field suggest that men are at least four times more likely than women to negotiate for compensation (Babcock & Laschever, 2003; Small, Gelfand, Babcock, & Gettman, 2007). When they do negotiate, women tend to claim smaller percentage increases than men on their initial salary offers (Brett & Stroh, 1997; Gerhart & Rynes, 1991; Stevens, Bavetta, & Gist, 1993). Aghast by women’s apparent lack of negotiating ability as well as the implications of this “gender negotiation gap” for the gender wage gap, both policy makers and professors have proposed additional training for women to raise their negotiating aspirations and effectiveness.
In this chapter, we argue that this apparent perceived bargaining deficiency on women’s part is actually a rational response to the differences in incentives and expectations that men and women face in compensation negotiations—one that is obscured by focusing solely on the immediate material payoffs from negotiation … We propose a two-period model in which employees make decisions about whether to negotiate for higher compensation in period one. Our purpose in creating a mathematical model is to be very concrete about the different effects that negotiating may have on a person’s utility and then to investigate how optimal decisions are affected by the gendered behavioral norms and expectations.
Policy makers, academics, and media reports suggest that women could shrink the gender pay gap by negotiating more effectively for higher compensation. Yet women entering compensation negotiations face a dilemma: They have to weigh the benefits of negotiating against the social consequences of having negotiated. Research shows that women are penalized socially more than men for negotiating for higher pay. To address this dilemma, the authors test strategies to help women improve both their negotiation and social outcomes in compensation negotiations.
In Study 1, communicating concern for organizational relationships improved female negotiators’ social outcomes, and offering a legitimate account for compensation requests improved negotiation outcomes. However, neither strategy—alone or in combination—improved both women’s social and negotiation outcomes.
Study 2 tested two strategies devised to improve female negotiators’ social and negotiation outcomes by explaining why a compensation request is legitimate in relational terms. Results showed that, although adherence to the feminine stereotype is insufficient, using these “relational accounts” can improve women’s social and negotiation outcomes at the same time. Normative implications of conformity to gender stereotypes to reduce gender pay disparities are discussed.
Qualitative research on multi-national work life has begun to illuminate how status hierarchies emerge and are maintained between workers more closely aligned with the dominant global business culture (e.g., Anglo-Americans) and those attempting to assimilate from other cultural backgrounds. In two studies, we compare the psychological experience of global and national job markets for university students from a rapidly globalizing emerging market. We recruited study participants from national universities in the Arab Gulf in which students are trained in English for work in global business markets. Negatively stereotyped as “lazy locals” in the Western-dominated global work culture, we find that male nationals feel more reticent to negotiate for career rewards (viz., compensation) in a global (versus local) business context (Study 1) and that they are more negatively evaluated by their peers for attempting to negotiate for higher pay in a global (vs. local) business context. Replicating U.S. studies, in the local business context we find that female (versus male) nationals feel more reticent to negotiate for higher pay (Study 1) and are more negatively evaluated when they do (Study 2). There were no gender differences in the propensity to negotiate or in the evaluation of negotiators in the global work context. In Study 2, mediation analyses support the proposition that, for male nationals in the global work culture, negotiating for higher compensation violates prescriptions of low-status behavior (viz., communality). Evaluators penalize female negotiators for a lack of communality, but also for perceived immodesty and materialism. We discuss implications for the study of global-local status hierarchies in multi-national employment contexts.
Four experiments show that gender differences in the propensity to initiate negotiations may be explained by differential treatment of men and women when they attempt to negotiate. In Experiments 1 and 2, participants evaluated written accounts of candidates who did or did not initiate negotiations for higher compensation. Evaluators penalized female candidates more than male candidates for initiating negotiations. In Experiment 3, participants evaluated videotapes of candidates who accepted compensation offers or initiated negotiations. Male evaluators penalized female candidates more than male candidates for initiating negotiations; female evaluators penalized all candidates for initiating negotiations. Perceptions of niceness and demandingness explained resistance to female negotiators. In Experiment 4, participants adopted the candidate’s perspective and assessed whether to initiate negotiations in same scenario used in Experiment 3. With male evaluators, women were less inclined than men to negotiate, and nervousness explained this effect. There was no gender difference when evaluator was female.
Why is private investment so low in Gulf compared to Western countries? We investigate cross-regional differences in trust and reference points for trustworthiness as possible factors. Experiments controlling for cross-regional differences in institutions and beliefs about trustworthiness reveal that Gulf citizens pay much more than Westerners to avoid trusting, and hardly respond when returns to trusting change. These differences can be explained by subjects' gain/loss utility relative to their region's reference point for trustworthiness. The relation-based production of trust in the Gulf induces higher levels of trustworthiness, albeit within groups, than the rule-based interactions prevalent in the West.