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Why Female Professors Earn Less: The Role of Retention Negotiations and Performance Bonuses

Author

Listed:
  • Cieply, Isea

    (University of Goettingen)

  • Barros, Laura

    (University of Goettingen)

  • Silbersdorff, Alexander

    (University of Goettingen)

  • Kneib, Thomas

    (University of Goettingen)

  • Kis-Katos, Krisztina

    (University of Goettingen)

Abstract

How large is the gender pay gap among university professors, and how do institutional pay-setting mechanisms shape this disparity? This paper provides novel empirical evidence on the gender pay gap among professors at a renowned German university. Using detailed human resources data for the time span 2013 to 2021, we document a statistically significant conditional gender pay gap in professorial salaries of 5.2%, after controlling for employment characteristics, socio-demographics, performance measures, and faculty and year fixed effects. Our findings show that these differentials can be attributed mainly to lower returns from retention negotiations, which have a particularly strong impact during the earlier stages of academic careers. These results highlight the importance of pay system designs in promoting gender equity in academia.

Suggested Citation

  • Cieply, Isea & Barros, Laura & Silbersdorff, Alexander & Kneib, Thomas & Kis-Katos, Krisztina, 2026. "Why Female Professors Earn Less: The Role of Retention Negotiations and Performance Bonuses," IZA Discussion Papers 18376, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18376
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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