Incentive pay and gender gaps in the Nordic countries
AbstractThis paper explores the effect of incentive pay on gender pay gaps in Finland, Norway and Sweden among professionals and managers within MNCs. Mercer 2009 Total Remuneration Survey data is utilised. Uniform job ladder, occupation, industry and wage definitions enable consistent cross-country comparisons. In addition to the between-country variation, the within-country variation of gender gap with respect to incentive pay is analysed. The results indicate that gender pay gaps differ among the Nordics and that occupation and industry controls have dissimilar effects across countries. Irrespective of wage element, Finland and Norway are characterised by higher gender gaps than Sweden. Incentives tend to accentuate gender pay gaps. In intention to alleviate the absence of job performance data, this study utilises a rudimentary, promotion-based measure for job performance. In Finland it does affect the gender gap. However, irrespective of gender, high-performers are penalised in Sweden but not in Finland or Norway. The Finnish data also allows the identification of low-performers. Low job performance is rewarded in Finland. Nonetheless, the job performance findings should be interpreted with cautions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33083.
Date of creation: 31 Aug 2011
Date of revision:
Wage differential; incentive pay; job ladder; gender; job performance;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-05 (All new papers)
- NEP-BEC-2011-09-05 (Business Economics)
- NEP-EUR-2011-09-05 (Microeconomic European Issues)
- NEP-HME-2011-09-05 (Heterodox Microeconomics)
- NEP-HRM-2011-09-05 (Human Capital & Human Resource Management)
- NEP-LAB-2011-09-05 (Labour Economics)
- NEP-LMA-2011-09-05 (Labor Markets - Supply, Demand, & Wages)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tuomas Pekkarinen & Chris Riddell, 2008.
"Performance Pay and Earnings: Evidence from Personnel Records,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 61(3), pages 297-319, April.
- Pekkarinen, Tuomas & Riddell, Chris, 2006. "Performance Pay and Earnings: Evidence from Personnel Records," IZA Discussion Papers 2253, Institute for the Study of Labor (IZA).
- Lawrence Kahn, 2010.
"Labor Market Policy: A Comparative View on the Costs and Benefits of Labor Market Flexibility,"
CESifo Working Paper Series
3140, CESifo Group Munich.
- Lawrence M. Kahn, 2012. "Labor market policy: A comparative view on the costs and benefits of labor market flexibility," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 94-110, December.
- Kahn, Lawrence M., 2010. "Labor Market Policy: A Comparative View on the Costs and Benefits of Labor Market Flexibility," IZA Discussion Papers 5100, Institute for the Study of Labor (IZA).
- Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2007.
"Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wage Distribution,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 60(2), pages 163-186, January.
- Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2005. "Is there a glass ceiling over Europe? Exploring the gender pay gap across the wages distribution," ISER Working Paper Series 2005-25, Institute for Social and Economic Research.
- Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," IZA Discussion Papers 1373, Institute for the Study of Labor (IZA).
- Wiji Arulampalam & Alison Booth & Mark L. Bryan, 2006. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," CEPR Discussion Papers 510, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- McKinley L. Blackburn & David Neumark, 1991.
"Omitted-Ability Bias and the Increase in the Return to Schooling,"
NBER Working Papers
3693, National Bureau of Economic Research, Inc.
- Blackburn, McKinley L & Neumark, David, 1993. "Omitted-Ability Bias and the Increase in the Return to Schooling," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 521-44, July.
- Rosholm, Michael & Smith, Nina, 1996. "The Danish Gender Wage Gap in the 1980s: A Panel Data Study," Oxford Economic Papers, Oxford University Press, vol. 48(2), pages 254-79, April.
- Tuomas Pekkarinen & Juhana Vartiainen, 2006. "Gender differences in promotion on a job ladder: Evidence from Finnish metalworkers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(2), pages 285-301, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.