Betting on Diversity—Occupational Segregation and Gender Stereotypes

Abstract

Gender segregation of occupations and entire industries is widespread. The segregation could be the result of perceived job-specific productivity differences between men and women. It could also result from the belief that homogeneous teams perform better or from in-group bias of male or female recruiters. We investigate these explanations in two samples: students and personnel managers. The subjects bet on the productivity of teams that are homogeneous with respect to gender at the outset and then either remain homogeneous or become diverse. The teams work on tasks that differ with respect to gender stereotypes. We obtain similar results in both samples. Women are picked more often for the stereotypically female task, and men are picked more often for the stereotypically male task. Subjects believe that gender-diverse teams perform better, especially in the task with complementarities, and they display an own-gender bias. Elicited expectations about the bets of others reveal that subjects expect the gender stereotypes of tasks but underestimate others’ bets on diversity. This paper was accepted by Yan Chen, behavioral economics and decision analysis. Funding: The authors acknowledge financial support from the Deutsche Forschungsgemeinschaft [Excellence Cluster EXC 2035/1 “The Politics of Inequality” (to U. Fischbacher), CRC TRR 190 “Rationality and Competition” (to D. Kübler), and the Excellence Cluster EXC 2055 “Contestations of the Liberal Script” (to D. Kübler)] and from Tamkeen [NYU Abu Dhabi Research Institute Award CG005 (to R. Stüber)]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4943 .