Gender differences in perceived abilities and career sorting

Despite the increase in female labor force participation over the last decades, occupations and college majors continue to be segregated between genders. Do gendered biases in beliefs about abilities affect this career sorting?

In this study, we aim to investigate the role of gender differences in self-perceived abilities on human capital investment paths, such as choice of subject in upper secondary schooling and the choice of college major.

Using nationally representative panel survey data from the Evaluation Through Follow-up (ETF) Study in combination with Swedish administrative data, we aim to examine whether individuals are biased in forming beliefs about their abilities, and whether this bias varies by gender.

Exploiting a grades reform in Sweden, we investigate how new information signals about one’s own abilities causally effect sorting into educational STEM careers.

Furthermore, to explore the dynamic consequences of gender-biased beliefs for educational investments, we plan to structurally estimate a dynamic model of human capital investments that allows for deviations from rational expectations in beliefs updating.

Using the model’s predictions, we strive to document the extent to which gender-specific biases in self-perceived abilities can explain educational sorting in Sweden as well as to identify effective policies that foster more informed choices.