Men Leverage Job Offers for Higher Pay More Than Women, Study Finds

A study by the Berlin-based Rockwool Foundation indicates that men are more likely than women to use external job offers as leverage to negotiate higher salaries in their current positions. This practice contributes significantly to the persistent gender pay gap. Researchers estimate that such renegotiations account for approximately half of the overall salary difference between men and women. The study, which gained access to Reuters, suggests that while the EU's Pay Transparency Directive, effective since June, aims to improve salary information within companies, it may not be sufficient on its own to eliminate gender disparities. Within the same workplace and occupation, men currently earn, on average, 8% more than women. The research found that external job opportunities boost men's current salaries, whereas women in similar situations do not achieve comparable gains, even when they are equally likely to switch employers. Women tend to change jobs rather than use external offers to negotiate raises, while men are more prone to securing salary increases without leaving their current company. The study's findings were based on employees who learned about external vacancies through family members working at other companies.