The gender gap in pre-career salary expectations: a test of five explanations

Purpose – The purpose of this paper is to investigate the gender gap in pre-career salary expectations. Five major explanations are tested to explain the gap, as well as understand the relative contribution of each explanation. Design/methodology/approach – Data were collected from 452 post-secondary students from Canada. Findings – Young women had lower initial and peak salary expectations than their male counterparts. The gap in peak salary could be explained by initial salary expectations, beta values, the interaction between beta values and gender, and estimations of the value of the labor market. Men and women in this study expected to earn a considerably larger peak salary than they expected for others. Research limitations/implications – Cross-sectional data cannot infer causality, and the Canadian sample may not be generalizable to other countries given that an economic downturn occurred at time of data collection. Research should continue to investigate how individuals establish initial salary ex...