## Willingness to be Paid Paper Accepted

I am pleased to announce that my paper “Willingness to be Paid: Who Trains for Tech Jobs?” has been accepted at Labour Economics.

Having a larger high-skill workforce increases productivity, so it is useful to understand how workers self-select into high-paying technology (tech) jobs. This study examines how workers decide whether or not to pursue tech, through an experiment in which subjects are offered a short programming job. I will highlight some results on gender and preferences in this post.

Most of the subjects in the experiment are college students. They started by filling out a survey that took less than 15 minutes. They could indicate whether or not they would like an invitation for returning again to do computer programming.

Subjects indicate whether they would like an invitation to return to do a one-hour computer programming job for \$15, \$25, \$35, …, or \$85.[1]This is presented as 9 discrete options, such as:

“I would like an invitation to do the programming task if I will be paid \$15, \$25, \$35, \$45, \$55, \$65, \$75 or \$85.”,

or,

“I would like an invitation to do the programming task if I will be paid \$85. If I draw a \$15, \$25, \$35, \$45, \$55, \$65 or \$75 then I will not receive an invitation.”,

and the last choice is

“I would not like to receive an invitation for the programming task.”

Ex-ante, would you expect a gender gap in the results? In 2021, there was only 1 female employee working in a tech role at Google for every 3 male tech employees. Many technical or IT roles exhibit a gender gap.

To find a gender gap in this experiment would mean female subjects reject the programming follow-up job or at least they would have a different reservation wage. In economics, the reservation wage is the lowest wage an employee would accept to continue doing their job. I might have observed that women were willing to program but would reject the low wage levels. If that had occurred, then the implication would be that there are more men available to do the programming job for any given wage level.

However, the male and female participants behaved in very similar ways. There was no significant difference in reservation wages or in the choice to reject the follow-up invitation to program. The average reservation wage for the initial experiment was very close to \$25 for both males and females. A small number of male subjects said they did not want to be invited back at even the highest wage level. In the initial experiment, 5% of males and 6% of females refused the programming job.

The experiment was run in 3 different ways, partly to test the robustness of this (lack of) gender effect. About 100 more subjects were recruited online through Prolific to observe a non-traditional subject pool. Details are in the paper.

Ex-ante, given the obvious gender gap in tech companies, there were several reasons to expect a gender gap in the experiment, even on a college campus. Ex-post, readers might decide that I left something out of the design that would have generated a gender gap. This experiment involves a short-term individual task. Maybe the team culture or the length of the commitment is what deters women from tech jobs. I hope that my experiment is a template that researchers can build on. Maybe even a small change in the format would cause us to observe a gender gap. If that can be established, then that would be a major contribution to an important puzzle.

For the decisions that involved financial incentives, I observed no significant gender gaps in the study. However, subjects answered other questions and there are gender gaps for some of the self-reported answers. It was much more likely that women would answer “Yes” to the question

If you were to take a job in a tech field, do you expect that you would face discrimination or harassment?

I observed that women said they were less confident if you just asked them if they are “confident”. However, when I did an incentivized belief elicitation about performance on a programming quiz, women appear quite similar to men.

Since wages are high for tech jobs, why aren’t more people pursing them? The answer to that question is complex. It does not all boil down to subjective preferences for technical tasks, however in my results enjoyment is one of the few variables that was significant.

People who say they enjoy programming are significantly more likely to do it at any given wage level, in this experiment.

Figure 3 from the paper shows the reservation wage of participates from all three waves. Subjects who say that they enjoy programming usually pick a reservation wage at or near the lowest possible level. This pattern is quite similar whether you are considering males or females.

Interestingly, enjoyment mattered more than some of the other factors that I though would predict willingness to participate. About half of subjects said they had taken a class that taught them some coding, but that factor did not predict their behavior in the experiment. Enjoyment or subjective preferences seemed to matter more than training. To my knowledge, policy makers talk a lot about training and very little about these subjective factors. I hope my experiment helps us understand what is happening when people self-select into tech. Later, I will write another blog about the treatment manipulation and results, and perhaps I will have the official link to the article by then.

Buchanan, Joy. “Willingness to be Paid: Who Trains for Tech Jobs.” Labour Economics.

[1] We use a quasi-BDM to obtain a view of the labor supply curve at many different wages. The data is not as granulated as that which a traditional Becker-DeGroot-Marschak (BDM) mechanism obtains, but it is easy for subjects to understand. The BDM, while being theoretically appropriate for this purpose, has come under suspicion for being difficult for inexperienced subjects to understand (Cason and Plott, 2014). We follow Bartling et al. (2015) and use a discrete version.

### 4 thoughts on “Willingness to be Paid Paper Accepted”

1. StickerShockTrooper October 2, 2022 / 5:04 pm

Are you testing college students (who presumably have some CP experience already)? It sounds like a pretty homogenous cohort by that point.

I expect the variables that actually contribute to the gender gap are things like aversion to long hours/overtime, family responsibilities, and contacts (whether or not you know someone in the field).

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• Joy October 2, 2022 / 7:55 pm

Thanks for the comment. Not all college students, according to them, have some CP experience. And even within the population of college students, however homogeneous it might be, there seems to be an obvious gender gap for decisions like whether to major in computer science.
Yes, I agree that family concerns are something that might matter a lot and also be very difficult to capture in an experiment.

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• StickerShockTrooper October 3, 2022 / 1:38 pm

Don’t we already suspect that the gender gap is primarily a social effect? Anecdotally, the most powerful driver of going into a major is who you know in the field.

I wonder if the gender gap would reappear if you add the perception that the task will be a “boy’s club” (or the opposite). (For example, make the task a group project, and vary the gender of the hypothetical leader or group members)

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