Gendered responses to unfair pay: Evidence from a factorial survey experiment among employees in German firms

Although recent literature shows that women are becoming more likely to perceive their (or other women’s) wages as unfairly low, how they respond to unfair pay is crucial for reducing wage inequality based on gender. Using a factorial survey experiment (FSE) among more than 4800 employees from 533 German firms, we examine expected behavioral reactions to perceived under-reward of fictitious co-workers (exit, applying for another job; voice, starting wage negotiations or complaining at the works council). While exit was generally perceived as a more likely reaction than voice, gendered expectations emerged: female co-workers were expected to engage in voice behaviors less frequently than male co-workers. These gendered patterns were mitigated when female supervisors were present, supporting the notion that female managers act as ‘agents of change’. Our findings point towards policies promoting female leadership across hierarchical levels to reduce normative barriers and encourage women to address wage injustices.