Abstract:
We explore gender differences in behaviour in a simple principle-agent game with two distinct treatments; a Trust treatment with contracts based on trust and reciprocity, and a Penalty treatment with contracts based on punishment. We find that male principals have greater variability in generosity across the Trust and Penalty treatments, while female principals have similar generosity in both treatments. Similarly we find that male agents have greater variability in effort chosen across treatments, while female agents have less variable effort choices across treatments. Finally, we find some evidence that female agents choose higher levels of effort compared to male agents in the Penalty treatment. We also review the surrounding literature on gender differences in preferences, and how these preferences may have an effect on labour market outcomes.
