Why Women Can’t Negotiate Away the Gender Pay Gap

Women face persistent challenges in negotiating to close the gender pay gap

Geonwoo Kim

In this article, Laura Counts examines the entrenched gender pay gap and critiques the notion that women can close this gap solely through negotiation. The research, led by Professor Laura Kray and postdoctoral fellow Margaret Lee from Berkeley Haas, highlights that structural issues and systemic biases are significant contributors to the pay disparity. Kray argues that advising women to negotiate more effectively oversimplifies the problem and unfairly places the burden on women, ignoring the larger context of institutional bias and inequality.

Source: Counts, Laura. “Why Women Can’t Negotiate Away the Gender Pay Gap.” Haas News | Berkeley Haas, 2 Apr. 2019, newsroom.haas.berkeley.edu/why-women-cant-negotiate-away-the-gender-pay-gap/.

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The article presents data indicating that women do ask for raises and promotions at similar rates to men, but they face discriminatory practices that impede their success. For instance, Kray's study reveals that women MBA students at Berkeley Haas asked for similar salaries as their male counterparts but were often met with dishonesty and manipulation. This finding underscores that merely improving negotiation skills does not address the underlying bias that women encounter.

Furthermore, the research delves into how team size influences salary disparities. Men are often assigned larger teams, which justifies higher salaries, while women are relegated to managing smaller teams. This discrepancy stems from stereotypical perceptions of leadership qualities and biases favoring men for roles with greater responsibility.

Kray's work suggests that addressing the gender pay gap requires a multifaceted approach, focusing on changing organizational structures and mindsets. The article advocates for transparency in compensation and promotions and emphasizes the need for systemic changes rather than individual efforts to negotiate better salaries.