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Non-Base Compensation and the Gender Pay Gap

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  • Hirsch, Boris

    (Leuphana University Lüneburg)

  • Lentge, Philipp

    (Leuphana University Lüneburg)

Abstract

This paper investigates whether non-base compensation contributes to the gender pay gap. In wage decompositions, we find that lower bonus payments to women explain about 10% of the gap at the mean and at different quantiles of the unconditional wage distribution whereas the lower prevalence of shift premia and overtime pay among women is unimportant. Among managers, the contribution of bonuses to the mean gap more than doubles and is steadily rising as one moves up the wage distribution. Our findings suggest that gender differences in bonuses are an important contributor to the gender pay gap, particularly in top jobs.

Suggested Citation

  • Hirsch, Boris & Lentge, Philipp, 2021. "Non-Base Compensation and the Gender Pay Gap," IZA Discussion Papers 14551, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14551
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    More about this item

    Keywords

    gender pay gap; bonus payments; shift premia; overtime pay; glass ceilings;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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