Social Attitudes on Gender Equality and Firms' Discriminatory Pay-Setting
AbstractWe analyze the relationship between social attitudes on gender equality and firms’ pay-setting behavior by combining information about regional votes relative to gender equality laws with a large data set of multi-branch firms and workers. The results show that multi-branch firms pay more discriminatory wages in branches located in regions with a higher social acceptance of gender inequality than in branches located in regions with a lower acceptance. The results remain robust if we account for detailed worker and job characteristics, and we cannot find evidence that regional differences in social attitudes influence how firms assign women and men to jobs and occupations. We investigate a subsample of performance pay workers for whom we are able to observe their time-based and performance pay component separately, and show that social attitudes on gender equality only influence the time-based pay component but not the performance pay component of the same workers. Because performance pay is more closely related to workers’ productivity than time-based pay, unobserved gender-specific productivity differences are not likely to explain the regional variation in within firm gender pay gaps.
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Bibliographic InfoPaper provided by University of Zurich, Department of Business Administration (IBW) in its series Working Papers with number 327.
Length: 49 pages
Date of creation: Jul 2013
Date of revision:
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-16 (All new papers)
- NEP-HME-2013-02-16 (Heterodox Microeconomics)
- NEP-HRM-2013-02-16 (Human Capital & Human Resource Management)
- NEP-LAB-2013-02-16 (Labour Economics)
- NEP-LMA-2013-02-16 (Labor Markets - Supply, Demand, & Wages)
- NEP-SOC-2013-02-16 (Social Norms & Social Capital)
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