Linda Babcock, a professor of economics at Carnegie Mellon University and the author of Women Dont Ask, has found, in studies of business-school students, that men initiate salary negotiations four times as often as women do, and that when women do negotiate, they ask for 30 percent less money than men do. At Manchester Business School, in England, professor Marilyn Davidson has seen the same phenomenon, and believes that it comes from a lack of confidence. Each year she asks her students what they expect to earn, and what they deserve to earn, five years after graduation. Ive been doing this for about seven years, she has written, and every year there are massive differences between the male and female responses. On average, she reports, the men think they deserve $80,000 a year and the women $64,000or 20 percent less.
A meticulous 2003 study by the Cornell psychologist David Dunning and the Washington State University psychologist Joyce Ehrlinger homed in on the relationship between female confidence and competence. At the time, Dunning and a Cornell colleague, Justin Kruger, were just finishing their seminal work on something thats since been dubbed the Dunning-Kruger effect: the tendency for some people to substantially overestimate their abilities. The less competent people are, the more they overestimate their abilitieswhich makes a strange kind of sense.