Determinants and consequences of salary negotiations by male and female MBA graduates.

Abstract

The salary negotiating behaviors and starting salary outcomes of 205 graduating MBA students were investigated within a power and dependence framework. In the bargaining propensity analysis, the dependent variable was whether or not the student negotiated for a salary higher than that initially offered by the organization with which the student eventually accepted a job offer. In the bargaining payoff analysis, the dependent variable was the accepted starting salary. The results did not support the notion that women negotiate less than men over salaries. However, women did obtain lower monetary returns from negotiation; there was a 4.3% starting salary increment for men compared with 2.7% for women. Over the course of a career, the accumulation of such differences may be substantial.