Advice from Women and Men and Selection into Competition

Abstract

We study how gender affects the impact of advice on men’s and women’s entry into a real-effort tournament and how advice varies with gender and gender matching. Our results show that advice reduces expected forgone earnings. The result is exclusively due to the positive reaction of women’s behavior, regardless of the advisor’s gender. The gender gap is not reduced. With respect to the advice process, our main findings are that, for medium performers, women are less likely to recommend tournament entry than men, women’s advice is worse, and men enter the tournament significantly more often than women with advice. Men follow the advice to avoid the tournament less often than women, independently of whether it comes from a male or female advisor. Overall, the gender of the paired advisee (advisor) does not impact advice giving (following).