The Effects of Gender, Education, and Personal Skills Self-Confidence on Income in Business Management1

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Abstract

A pay disparity between men and women persists, especially in the higher echelons of the business world. This study investigates whether salaries in the business management field are affected by gender, hours worked, SAT score, college selectivity, college grades, an undergraduate degree in business, graduate degree attainment, leadership self-confidence, and social self-confidence. The sample consists of 941 men and women employed in business management; approximately 8% of this group are racial minority members. As anticipated, hours worked, college selectivity, college grades, a graduate degree, and leadership self-confidence are determinants of income. Most important is the finding that after controlling for hours worked, education background, and self-confidence in personal skills, men still receive higher salaries than women.

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