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Gender Gaps in Performance Pay : New Evidence from Spain

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  • Sara De La Rica
  • Juan J. Dolado
  • Raquel Vegas

Abstract

In this paper we use micro data from a large wage survey in Spain during 2006 to analyze the magnitude of the gender gap in the performance-pay (PP) component of hourly wages. Under the presumption that PP is determined in a more competitive fashion than the other wage components, we argue that there should be less room for gender discrimination in PP. Accordingly, all else equal, the gender PP gap should be low. However, our findings just show the opposite. After controlling for observable characteristics, non-random sorting into PP jobs and segregation into different firms and occupations, the estimated adjusted gap in favour of men remains fairly high (around 30 log points). Further, we document a "glass ceiling" pattern in the gap throughout the distribution of PP. We examine alternative ways of rationalizing these findings and conjecture that monopsonistic exploitation exerted by employers might be the one more consistent with our evidence.

Suggested Citation

  • Sara De La Rica & Juan J. Dolado & Raquel Vegas, 2015. "Gender Gaps in Performance Pay : New Evidence from Spain," Annals of Economics and Statistics, GENES, issue 117-118, pages 41-59.
  • Handle: RePEc:adr:anecst:y:2015:i:117-118:p:41-59
    DOI: 10.15609/annaeconstat2009.117-118.41
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    File URL: http://www.jstor.org/stable/10.15609/annaeconstat2009.117-118.41
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    References listed on IDEAS

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    1. Gender Gaps in Performance Pay: New Evidence from Spain
      by maximorossi in NEP-LTV blog on 2013-12-11 19:54:24

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    Cited by:

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    2. Gerst, Benedikt & Grund, Christian, 2017. "Career Interruptions and Current Earnings: The Role of Interruption Type, Compensation Component, and Gender," IZA Discussion Papers 10713, Institute of Labor Economics (IZA).

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