A cross‐cultural study in the UK and Australia of pay expectations and entitlements: A case of vanishing differences?

Abstract

Purpose

Previous US research has consistently revealed females reporting lower pay expectations and entitlements compared to their male counterparts. The purpose of this paper is to investigate whether these gender differences still exist, specifically in British and Australian business students, or whether there has been a generation shift in attitudes.

Design/methodology/approach

Quantitative data were analysed from 481 (252 females and 229 males) university students, on their responses to what they “expected” to earn five years after graduation and what they thought they “deserved” to earn. Students from two British universities (n=285) and two Australian universities (n=196) participated.

Findings

Results revealed that the presence of very high values (outliers) reported by a small proportion of male respondents led to apparent gender differences in perceived entitlement (deserved salary). However, appropriately modified analyses showed no significant gender differences in expected salary, deserved salary or salary difference. Differences were observed between countries; in the UK expectations and views on deserved salary were higher than those expressed in Australia. In addition, in both countries' students from higher ranking universities expected higher salaries and believed they deserved a higher salary.

Research limitations/implications

The sample is restricted to University business students and may not generalise to other groups.

Practical implications

Implications of these findings reflect on gender pay inequities, along with methodological issues for future research.

Originality/value

This paper challenges the long‐held view that, in general, males have more positive expectations of their future salaries than females. While this has been reported in the past, the paper illustrates that in a contemporary sample across two countries, the great majority of male and female students had very similar expectations for their future salary. The paper proposes some explanations that may account for this phenomenon. The only clear gender difference observed was the presence of a small proportion of males with extremely high salary expectations; the paper highlights the necessity for appropriate statistical analysis of such highly skewed data.

Citation

Davidson, M.J., Wood, G.J. and Harvey, J.T. (2012), "A cross‐cultural study in the UK and Australia of pay expectations and entitlements: A case of vanishing differences?", Gender in Management, Vol. 27 No. 3, pp. 165-185. https://doi.org/10.1108/17542411211221268