Updating, Self-Confidence and Discrimination

40 Pages Posted: 24 Dec 2011

See all articles by Konstanze Albrecht

Konstanze Albrecht

RWTH Aachen University - Institute of Psychology

Emma von Essen

Uppsala University; Stockholm University

Juliane Parys

University of Bonn

Nora Szech

Karlsruhe Institute of Technology

Abstract

In a laboratory experiment, we show that subjects incorporate irrelevant group information into their evaluations of individuals. Individuals from on average worse performing groups receive lower evaluations, even if they are known to perform equally well as individuals from better performing groups. Our experiment leaves room neither for statistical nor taste-based discrimination. The discrimination we find is rather due to conservatism in updating beliefs. This conservatism is more pronounced in females. Furthermore, self-confident male evaluators overvalue male performers. Additionally, we use our data to simulate a job promotion ladder: Few rounds of moderate discrimination virtually eliminate females in higher positions.

Keywords: updating, conservatism, gender, discrimination, self-confidence

JEL Classification: J16, C91, D81

Suggested Citation

Albrecht, Konstanze and von Essen, Emma and Parys, Juliane and Szech, Nora, Updating, Self-Confidence and Discrimination. IZA Discussion Paper No. 6203, Available at SSRN: https://ssrn.com/abstract=1976534 or http://dx.doi.org/10.2139/ssrn.1976534

Konstanze Albrecht (Contact Author)

RWTH Aachen University - Institute of Psychology ( email )

Jaegerstrasse 17-19
Aachen, 52062
Germany

Emma Von Essen

Uppsala University ( email )

Uppsala, SE-751 26
Sweden

Stockholm University ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Juliane Parys

University of Bonn ( email )

Regina-Pacis-Weg 3
Postfach 2220
Bonn, D-53012
Germany

Nora Szech

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

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