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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

This paper analyzes the gender gap in the performance–pay component of hourly wages received by workers in Spain using detailed information drawn from a large wage survey for 2006. Under the assumption that performance pay is determined in a more competitive fashion than the remaining wage components, there should be less room for gender discrimination. However, this is not what we find. After controlling for observable characteristics, non-random selection into performance-pay jobs and for segregation into different firms and occupations, the estimated adjusted gap in favour of male remains large (around 30 log points). Further, there is evidence of a “glass ceiling” pattern throughout the distribution of performance pay. After examining alternative hypotheses that could rationalize these findings, we conjecture that employers’ discrimination, possibly due to monopsonistic power, might be the one which is more consistent with the evidence.

Suggested Citation

  • Sara de la Rica & Juan J. Dolado & Raquel Vegas, 2013. "Gender Gaps in Performance Pay: New Evidence from Spain," Working Papers 2013-14, FEDEA.
  • Handle: RePEc:fda:fdaddt:2013-14
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    8. 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, April.
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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:

    1. Juan J. Dolado & Cecilia Garcia-Peñalosa & Linas Tarasonis, 2016. "The Changing Nature of Gender Selection into Employment: Europe over the Great Recession," AMSE Working Papers 1620, Aix-Marseille School of Economics, France.
    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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