Luisa Rosti Full professor in the Department of Economics and Business at Pavia University. Current Teaching: * Labor Economics ** Personnel and Gender Economics My research on gender discrimination, education and selfemployment has been published in Gender & Society, Economics of Education Review; Small Business Economics; International Journal of Manpower; Education and Training. I am author of Femina Oeconomica Ediesse, Rome, 1996. book cover * Undergraduate 3-year degree courses (awarded at the end of a 3 year prgramme ) **Postgraduate 2-year degree courses (awarded at the end of a 2 year prgramme ) Luisa Rosti [email protected] 1 Women and the Italian graduates labour market Luisa Rosti [email protected] 2 SUMMARY The effect of the stereotypes that act on both the supply side and the demand side of the labor market leads to a waste of talent that harms women, businesses and society. Luisa Rosti [email protected] 3 FOCUS: STEREOTYPES Stereotype is the belief that an individual possesses certain characteristics only because it belongs to a group that has these characteristics on average. Luisa Rosti [email protected] 4 For example, the woman is considered the most practical and peaceful, less aggressive, she knows how to listen and she loves to take care of others, she is best suited to domestic production, while the man has a strong personality, logical and abstract reasoning ability, spirit of adventure and leadership skills, and is more suited to the job market. Luisa Rosti [email protected] 5 The problem with the stereotypes Stereotypes are a result of the information environment (1) We do not need to deny the grain of truth but we should avoid the error of assessment Can we eliminate them? No, because of the point (1), but we can reduce their costs with equal opportunities policies Luisa Rosti [email protected] 6 The problem lies in the fact that stereotypes distort the rationality of choices and lead to a waste of resources. This result of psychological research is so important as to merit the award of the Nobel Prize for Economics, given in 2002 to the psychologist D. Kahneman for his studies on Representativeness Heuristic. Luisa Rosti [email protected] 7 This is the method that individuals use to categorize objects, people and events, replacing the use of the stereotypes and the similarity criterion to the selection criteria associated with the rational calculation of probabilities. People tend to attribute similar characteristics to similar objects, often ignoring information that would lead to the opposite conclusion, but which are contrary to the stereotype. Luisa Rosti [email protected] 8 Kahneman received the Nobel Prize for Economics in 2002 (cognitive psychology applied to economic decisions) He is the second psychologist (after Simon in 1978) to award the N. in economics. Daniel Kahneman (1934 -) Princeton University, Dep. of Psychology Amos Tversky (1937-1996) Stanford University, (cognitive psychology) Daniel Kahneman and Amos Tversky, “On the Psychology of Prediction,” Psychological Review, 1973, 80: 237– 251. Luisa Rosti [email protected] 9 Their experiments show that individuals base their judgment on the personality traits that correspond to the stereotypes ignoring the objective statistical probability. Luisa Rosti [email protected] 10 FOCUS: TALENT Individuals are not born equal. They differ by level of intelligence or innate cognitive ability. It follows that the smartest people have a comparative advantage in problem solving than others. The talent should not be wasted because it is the most important resource of modern economies (Superstars, Rosen 1981). Luisa Rosti [email protected] 11 FOCUS: TALENT The talent (innate ability) is a random variable; it is not measurable as input but manifests itself in the output; its identification has social value because a mismatch reduces the actual output relative to potential output Luisa Rosti [email protected] 12 Natural talent is specific and provides a comparative advantage to those who possess it, that is, the ability to achieve excellence in certain activities. General talent or intelligence allows you to stand out in each activity. Between agents of the same natural talent, the most intelligent will have higher productivity (ceteris paribus) Luisa Rosti [email protected] 13 The theoretical context we apply the mainstream method to 3 areas: G. Becker The Economics of the Family Nobel 1992 University of Chicago the most cited economist by the Social Science Citation Index (A Treatise on the Family) Personnel Economics E. Lazear Professor of Human Resources Management and Economics University of Stanford Marianne A. Ferber Professor Emeritus of Economics Gender Economics University of Illinois Julie A. Nelson Professor of Economics University of Massachusetts Luisa Rosti [email protected] 14 If we analyse the academic performance of Italian graduates and their occupational status and earnings three years after graduation, we find that the educational and occupational performances do differ by gender: girls outperform boys in academic achievement, but male graduates outperform female graduates in labour market outcomes. Luisa Rosti [email protected] 15 Gender Economics assumes the hypothesis of equal distribution of talent between the sexes (gender similarities hypothesis, Janet Shibley Hyde 2005). Professional Career School Career (educational) The female talent is fully revealed in educational career, but not in the professional career Luisa Rosti [email protected] 16 The girls are graduating more... 2009-2010 M F Rate of transition from secondary (high) school 58 68 Rate of achievement of three-year degrees* 27 39 Rate of achievement of long degrees (4-6 years)* 15 22 * number of graduates for every 100 young people (25 years old) http://www3.istat.it/dati/catalogo/20121218_00/PDF/Cap7.pdf Luisa Rosti [email protected] 17 haier and get higher marks ... Graduates by degree mark 2011 F/MF% Voto da 66 a 90 41 Voto da 91 a 100 53 Voto da 101 a 105 62 Voto da 106 a 110 65 Voto uguale a 110 e lode 66 Overall graduates 59 Luisa Rosti [email protected] 18 and get more graduation with honors ... Gruppo di corsi Total 11 23 33 40 45 GRUPPO DIFESA E SICUREZZA GRUPPO INGEGNERIA GRUPPO SCIENTIFICO GRUPPO EDUCAZIONE FISICA GRUPPO AGRARIO F/MF% With honors 24 28 36 54 49 GRUPPO ECONOMICO-STATISTICO 51 GRUPPO ARCHITETTURA 52 GRUPPO GIURIDICO 57 61 62 69 59 66 GRUPPO GEO-BIOLOGICO 62 63 66 65 71 71 GRUPPO MEDICO 66 73 71 83 86 91 70 86 86 92 Totale GRUPPO CHIMICO-FARMACEUTICO GRUPPO POLITICO-SOCIALE GRUPPO LETTERARIO GRUPPO PSICOLOGICO GRUPPO LINGUISTICO GRUPPO INSEGNAMENTO ns. el su dati I.stat 2011 Luisa Rosti [email protected] 19 but girls are more unemployed ... TASSO DI DISOCCUPAZIONE NEL 2011 DEI LAUREATI DEL 2007 GRUPPI DI CORSI LAUREA BREVE Maschi Femmine LAUREA LUNGA Maschi Femmine Gruppo difesa e sicurezza 10 21 31 2 12 21 17 13 15 21 31 26 15 23 16 3 26 22 41 5 22 24 28 19 23 40 37 24 19 39 18 0 9 12 22 5 4 10 15 8 13 17 24 20 5 9 10 0 15 9 30 4 7 14 20 13 18 29 26 20 9 22 16 9 Totale 15 23 10 18 Gruppo scientifico Gruppo chimico-farmaceutico Gruppo geo-biologico Gruppo medico Gruppo ingegneria Gruppo architettura Gruppo agrario Gruppo economico-statistico Gruppo politico-sociale Gruppo giuridico Gruppo letterario Gruppo linguistico Gruppo insegnamento Gruppo psicologico Gruppo ed.fisica Luisa Rosti [email protected] 20 ... and three years after graduation earn less than boys ... Guadagno medio mensile netto in euro dei laureati del 2007 che nel 2011 svolgono un lavoro continuativo a t. p. iniziato dopo la laurea LAUREA BREVE LAUREA LUNGA Gender wage gap M F M F BREVE LUNGA Gruppo difesa e sicurezza 1638 1476 1784 1778 9,8 0,3 Gruppo insegnamento 1229 1103 1201 1187 10,3 1,2 Gruppo chimico-farmaceutico 1415 1248 1436 1399 11,8 2,6 Gruppo medico 1517 1444 1877 1773 4,8 5,5 Gruppo geo-biologico 1216 1181 1382 1292 2,8 6,5 Gruppo agrario 1331 1121 1254 1169 15,8 6,7 Gruppo architettura 1199 1122 1361 1267 6,4 6,9 Gruppo ingegneria 1397 1273 1586 1456 8,9 8,2 Gruppo letterario 1199 1087 1296 1164 9,3 10,2 Gruppo giuridico 1432 1246 1373 1223 13,0 11,0 Gruppo politico-sociale 1336 1179 1429 1271 11,8 11,1 Gruppo psicologico 1329 1192 1332 1178 10,3 11,6 Gruppo economico-statistico 1413 1298 1557 1375 8,2 11,7 Gruppo scientifico 1387 1218 1532 1347 12,2 12,0 Gruppo linguistico 1287 1220 1444 1257 5,2 12,9 Gruppo ed.fisica 1356 1167 1323 1137 14,0 14,0 Totale 1387 1267 1506 1308 8,7 13,1 Luisa Rosti [email protected] 21 ...and face a glass ceiling in the course of their careers An example: the academic career F/MF% Italiy 2011 European Union 2009 United States* 2009 Full Professors 20 18 19 Associate Professors 34 36 34 Senior Lecturers 45 45 40 http://www.ingenere.it/articoli/donne-che-giudicano-le-donne-cattedra Luisa Rosti [email protected] *(escluse le scienze umane) 22 Differenziale retributivo GPGtra laureati e laureate 25-64 Laureati = 100 OCSE 2012 In Italy, a female graduate earns slightly more than half (65%)Laureate of a male 25-64 graduate 100 90 80 70 60 50 40 30 20 10 0 Fonte: Education at a Glance 2012 Average annual full-time, full-year earnings of women as a percentage of men's earnings, by level of educational attainment and age groups 23 Luisa Rosti [email protected] 23 Why the female talent is not revealed and is not rewarded as the male talent? If economic theory attributes to the competition among agents the efficiency property in the detection of talent, why does the impact of gender show that women do not reach senior positions with the same frequency as men? Luisa Rosti [email protected] 24 Talent and Gender 2 Hp.: 2 theories: Individuals have different talents The distribution of talent is equal between men and women as a group Theory of tournaments: social welfare is higher if the most gifted are matched to the executive positions (Lazear e Rosen ’81, Rosen ‘92) Theory of the glass ceiling: the rise of the power, prestige and pay, for a job position leads to a decline in the share of women matched to it (Ferber e Nelson, ‘93) Luisa Rosti [email protected] 25 In modern economies, efficiency requires that the smartest people are matched to leadership positions. As poor decisions at the top of hierarchical organizations produce enormous damage, spilling cascades on underlying layers, senior positions should be entrusted to the smartest minds in order to minimize the risk of error. Luisa Rosti [email protected] 26 Yet, while psychological research has shown that intelligence is equally distributed between men and women, the glass ceiling literature signals that all over the world the higher the rank, the smaller the proportion of women. Luisa Rosti [email protected] 27 Hence, there is a waste of intelligence and a sub-optimal match between individuals and jobs within economies. Luisa Rosti [email protected] 28 In this lecture we use tournament theory, which emphasizes the role of intelligence as the main determinant of rank and regards competition as an efficient method to match individuals with jobs in hierarchical organizations. Luisa Rosti [email protected] 29 Efficiency of Tournaments The efficiency property of the tournaments only apply if the tournaments are symmetrical, ie: if all agents have the same cost for the effort provided in the competition (if not, the tournament is uneven), and if all agents are treated equally by the rules of the competition (if not, the tournament is unfair) 30 But the competition for a career in the real world are not even and fair towards women. A substantial literature shows that because of stereotypes, an identical performance is systematically underestimated if attributed to a woman rather than a man, thus revealing the existence of gender discrimination. Luisa Rosti [email protected] 31 Entrusting talent revelation to the tournaments is a problem for women because in real life tournaments are asymmetric: A) They are uneven: gender stereotypes determine the different use of time between the genders, and this unequal division of labor feeds the stereotype of the "Maternal Wall“ (Correll, Benard and Paik, ‘07) B) They are unfair: performance evaluation is conditioned by gender stereotypes, and more skills are attributed to gender considered more suited to the role (Valian ‘98) 32 The stereotype of the "Maternal Wall“ Correll, Benard and Paik (2007) The experiment concerns the evaluation of an identical CV referring alternately to 2 groups of individuals (Mothers and Non-Mothers). The evaluators judged the Mothers less hard working, less competent, less suitable for hiring or promotions. In addition, the mothers received wage offers lower than the NonMothers. - + Getting a Job: Is there a motherhood penalty? NB: for fathers the opposite is true 33 The stereotype of the “Think manager – Think male” Biernat and Kobrynowicz (1997) The same CV was submitted to the assessment of skills for a management role. The same skills were assessed twice for men than women F 1 M 2 Manager NB.: for the role of secretary the opposite is true 34 The revelation of talent through the tournament is also a problem because the stereotypes are pervasive and unconscious, only specific searches can reveal their presence. These studies show that each individual, man or woman, perceives and treats women differently from men. 35 Goldin and Rouse (American Economic Review, 2000) The chances of getting a place in the orchestra increases by 50% if the trial hearings of candidates are blind. This is demonstrated by the data collected from 1970 to 1996 about 14,000 members of major symphony orchestras in the U.S. 36 Steinpreis, Anders and Ritzke (1999) The experiment involved 238 academic psychologists (118 men and 120 women) who evaluated the same CV for both a first assumption and a promotion 1 2 The result was that both male and female evaluators preferred for hiring men at a ratio of 2 to 1. 37 Wennerås and Wold (1997) The experiment deals with requests for admission to a prestigious research center (Swedish Medical Research Council).The admission rate of female graduates was less than half that of the male graduates. Women were 46% of applicants, but only 20% of those admitted. Using the impact factor for assessing the scientific productivity of applicants it was found that to achieve the same score of a male graduate, a female graduate had to have a number of publications more than double. 38 NOBEL 1972 John R. Hicks, Kenneth J. Arrow NOBEL 2001 Joseph Stiglitz gender discrimination (stereotypes lead to ) The presence of discrimination is revealed only by specific research, which highlight the difference in treatment between agents of the same productivity (Stiglitz, 1973). Nobel 1992 Gary S. Becker Nobel 2006 Edmund S. Phelps 39 The lack of perception of discrimination The research of cognitive social psychology show that most of us want to behave properly (fair), BUT most of us have unconscious prejudices that influence the evaluation of work performance (Valian, 1998) Even individuals with strong egalitarian values, fully convinced that they do not treat men and women differently, unconsciously take discriminatory behavior (Dovidio, 2001) 40 We often hear statements such as: "Here we reward merit, not being a man or woman" "I have never been discriminated against” But research shows systematic errors of assessment of which agents are unaware. N.B.: in most of these studies the gender of the evaluator was irrelevant, because even the females evaluators are influenced by gender stereotypes (Ellemers et al., 2004) (The queen bee syndrome, or Eva vs Eva ) 41 To design a good assessment procedures you need to keep in mind that no evaluator is neutral with respect to gender. You should not believe what seems true on the surface, or what you want to be true, but what is scientifically proven. The scientific method is the hallmark of university studies, the critical spirit is its identity. 42 Why do we need Equal Opportunities Policies? Equal Opportunities policies ensure that competition is neither unfair nor uneven, and remove barriers to recruitment, training and promotion, seeking talent from the widest pull of possibility. This is the best way to foster cooperation and to achieve greater prosperity for all, women and men. 43 The image in the next page represents a hierarchical structure that has nearly the same number of men and women, with intelligence equally distributed between men and women. The arrows represent the career paths, and the red line represents the glass ceiling that prevents the top women from reaching the top. Luisa Rosti [email protected] 44 Every senior position missed out by a clever woman due to the glass ceiling, will be replaced by a less-clever man. Luisa Rosti [email protected] 45 THEORY PRACTICE Here is the harm! THE END 46
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