FAIRGAP · Wage Negotiations and Gender Pay Gaps: Exploring the Role of Fairness Attitudes in Europe

In the EU, addressing the gender pay gap, defined as the difference in earnings between men and women, is a significant policy challenge. Despite concerted efforts, this disparity persists, exhibiting noticeable differences across member states. Recent changes in the European labor market, such as the reduced role of unions and the shift towards individual pay negotiations, may amplify these disparities. Individual pay negotiations increase the responsibility of employees in determining their pay. Men typically achieve more favorable outcomes than women in these individual pay negotiations. Thus, the increasing prevalence of individual pay negotiations in Europe may lead to the widening of the gender pay gap. A vital aspect of this research is the focus on fairness norms in pay negotiations and their impact on the gender pay gap. Prior research reveals that perceptions of pay fairness are often subconsciously skewed against women. This project explores under what conditions pay fairness attitudes develop a gender bias and how they subsequently influence the outcomes of pay negotiations. To investigate this, I will conduct unique surveys across selected European countries, examining the origins of gender-biased fairness attitudes and their effect on negotiation behaviors and the gender pay gap. These surveys will incorporate experimental elements to assess causal relationships. By integrating these empirical studies within a unified theoretical framework, the project seeks to offer a comprehensive understanding of gender biases in pay negotiations and their broader implications for the labor market. In sum, this project tackles a vital gap in our knowledge regarding the gender pay gap, focusing on the influence of fairness norms in wage negotiations. It represents a critical advancement in labor market research and holds the potential to guide future policies aimed at reducing gender inequalities in the workplace.