Performance Pay and the Gender Wage Gap: Evidence from Spain

Sara De La Rica, Juan Dolado and Raquel Vegas

No 5032, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper uses detailed information from a large wage survey in 2006 to analyze the gender wage gap in the performance-pay (PP) component of total hourly wages and its contribution to the overall gender gap in Spain. Under the assumption that PP is determined in a more competitive fashion than the other wage components, one would expect, in principle, to find a low gender gap in PP. However, this is not what we find. After controlling for observable differences in individual and job characteristics as well as for non random selection, the adjusted gender gap in PP reaches 26 log points, displaying a "glass ceiling" pattern. After examining several alternative theories that could rationalize these findings, we conjecture that monopsonistic features, possibly related to women's lower labour mobility due to housework, fit better with our results than other theories related to occupational segregation.

Keywords: gender gaps; selection bias; quantile regressions; performance pay (search for similar items in EconPapers)
JEL-codes: J31 J33 J42 J71 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2010-06
New Economics Papers: this item is included in nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Published - revised version published as 'Gender Gaps in Performance Pay: New Evidence from Spain' in: Annals of Economics and Statistics, 2015, 117-118, 41-59

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Working Paper: Performance Pay and the Gender Wage Gap: Evidence from Spain (2010)
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