Men use job offers to get raises
A study by the Rockwool Foundation Berlin found that men are more likely than women to use outside job opportunities as leverage to negotiate higher pay in their existing jobs, contributing to persistent gender wage gaps.
According to the report, renegotiation accounts for around half of the gender pay gap.
Gender Differences in Pay Negotiation
The study estimates that men earn on average 8% more than women in the same workplace and occupation.
Men are more likely to use outside job opportunities to negotiate a pay rise, while women are just as likely to change employers but don’t see comparable gains in their current jobs.
Researchers based their study on employees who heard of outside job openings from parents or siblings at other firms, finding that men’s wages in their existing jobs increase when they receive outside job offers.
By examining the responses of men and women to outside job opportunities, the researchers were able to identify significant differences in renegotiation behavior, which contributes to the persistence of gender pay gaps.
Impact of EU Pay Transparency Directive
The European Union Pay Transparency Directive, which took effect on June 7, 2026, requires firms to disclose pay data, but the study suggests that pay transparency alone may not be enough to close gender pay gaps.
The directive aims to improve information about pay differences within firms, but the findings indicate that renegotiation behavior differs between men and women, which may persist even with increased transparency.
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Women are just as likely as men to change employers when hearing of outside job opportunities, but men are more likely to use such offers to negotiate pay increases without leaving their current jobs.
Wage Disparities Within the Same Workplace
The study highlights the need for further action to address the gender pay gap, as men’s higher propensity to renegotiate their salaries using outside job offers contributes to the persistent wage disparity.
Examining how the EU Pay Transparency Directive will affect wage negotiation behaviors in the long term is necessary, and whether additional measures will be necessary to achieve greater pay equality.
The Rockwool Foundation Berlin study provides insight into the complex factors driving the gender pay gap, emphasizing the importance of considering behavioral differences in pay negotiation strategies.
The findings of the study have significant implications for policymakers, employers, and employees, as they highlight the need for a more subtle understanding of the factors contributing to gender pay gaps.
By recognizing the importance of renegotiation behavior in perpetuating gender pay gaps, employers and policymakers can develop targeted strategies to promote pay equality and address the underlying causes of these disparities.
The study’s focus on the role of outside job opportunities in pay negotiation highlights the need for employees to be aware of their market value and to be proactive in negotiating their salaries.
Furthermore, the study’s findings suggest that employers may need to reexamine their pay structures and negotiation practices to ensure that they are fair and equitable for all employees, regardless of gender.
