Abstract
We study when preferences for competition are a positive economic trait among high earners and the extent to which this trait can explain the gender gap in income among a master's degree in business administration (MBAs). Consistent with the experimental evidence, preferences for competition are a positive economic trait only for individuals who are not overconfident. Preferences for competition correlate with income only at graduation when bonuses are guaranteed and not a function of performance. Overconfident competition-loving MBAs observe lower compensation and income growth, and experience greater exit from high-reward industries and more frequent job interruptions. Preferences for competition do not explain the gender pay gap among MBAs.
Original language | English (US) |
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Pages (from-to) | 1087-1121 |
Number of pages | 35 |
Journal | Journal of Finance |
Volume | 79 |
Issue number | 2 |
DOIs | |
State | Published - Apr 2024 |
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics