A new study by the Rockwool Foundation Berlin, published on Sunday, reveals that men are significantly more likely than women to leverage outside job opportunities to negotiate higher pay in their current roles. This behavior contributes to persistent gender wage gaps, with the study estimating that renegotiation accounts for about half of the pay gap.
Key Findings:
- Among workers in the same workplace and occupation, men earn on average 8% more than women.
- Outside job opportunities raise men's wages in their existing jobs, while women see no comparable gains, even though they are just as likely to change employers.
- Women generally appear to change jobs rather than using offers to negotiate a pay rise; men, by contrast, are more likely to obtain pay increases without leaving.
The study, based on employees who heard of outside job openings from parents or siblings at other firms, suggests that the EU Pay Transparency Directive, which came into force in June, may not be enough to close gender gaps on its own. While the directive is expected to improve information about pay differences within firms, the findings indicate that pay transparency alone may not address the behavioral differences in negotiation.
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