Tuesday, September 21, 2010

The Price of Prejudice

http://www.innovative-analytics.com/docs/ThePriceofPrejudice.pdf

In a second study the team asked another group, this time of students who were about to graduate,
to consider hypothetical job opportunities at consulting firms. The positions varied in starting salary,
location, holiday time and the sex of the potential boss.

When it came to salary, location and holiday, the students’ decisions matched their stated
preferences. However, the boss’s sex turned out to be far more important than they said it was (this
was true whether a student was male or female). In effect, they were willing to pay a 22% tax on
their starting salary to have a male boss.