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Gender Gaps in Performance Pay : New Evidence from Spain

Listed author(s):
  • Sara De La Rica
  • Juan J. Dolado
  • Raquel Vegas

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.

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File URL: http://www.jstor.org/stable/10.15609/annaeconstat2009.117-118.41
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Article provided by GENES in its journal Annals Of Economics and Statistics.

Volume (Year): (2015)
Issue (Month): 117-118 ()
Pages: 41-59

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Handle: RePEc:adr:anecst:y:2015:i:117-118:p:41-59
DOI: 10.15609/annaeconstat2009.117-118.41
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  1. Jimeno, Juan F. & Felgueroso, Florentino & Dolado, Juan José, 1997. "Minimum wages, collective bargaining and wage dispersion : the spanish case," UC3M Working papers. Economics 10496, Universidad Carlos III de Madrid. Departamento de Economía.
  2. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2010. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 291-330, 04.
  3. Keith W. Chauvin & Ronald A. Ash, 1994. "Gender Earnings Differentials in Total Pay, Base Pay, and Contingent Pay," ILR Review, Cornell University, ILR School, vol. 47(4), pages 634-649, July.
  4. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
  5. Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away From Competition? Do Men Compete Too Much?," NBER Working Papers 11474, National Bureau of Economic Research, Inc.
  6. Alan Manning & Farzad Saidi, 2008. "Understanding the Gender Pay Gap: What's Competition Got to Do with It?," CEP Discussion Papers dp0898, Centre for Economic Performance, LSE.
  7. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
  8. Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance in Competitive Environments: Gender Differences," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 1049-1074.
  9. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
  10. Moshe Buchinsky, 2001. "Quantile regression with sample selection: Estimating women's return to education in the U.S," Empirical Economics, Springer, vol. 26(1), pages 87-113.
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