Study: Women MBAs earn less than men because they aren't as competitive

By Jason Russell, Jason Russell

Published December 20, 2015

Women aren't as competitive-natured as men, and that's why they end up in lower-paying jobs, according to a new study.

Feminists have long claimed that women get paid less than men mostly because of discrimination. Others say most women choose to go into lower-paying professions, work fewer hours and have their careers interrupted more often by family concerns.

In any event, some combination of factors has produced a situation in which all women, on average, earn less than all men earn, on average. A new working paper published by the National Bureau of Economic Research finds that part of the pay gap — at least among MBA graduates — can be explained by women seeking out less competitive jobs.

"We find that, among MBA graduates from a prestigious business school, competitive individuals obtain higher earnings at graduation," researchers write in the working paper. "Importantly, differences in taste for competition account for a significant share of the gender gap in earnings."

The paper was authored by Ernesto Reuben, with Columbia University, Paola Sapienza, with Northwestern University, and Luigi Zingales, with the University of Chicago.