Non-Base Compensation and the Gender Pay Gap

Boris Hirsch () and Philipp Lentge ()
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Boris Hirsch: Leuphana University of Luneburg, Halle Institute for Economic Research, and IZA Institute of Labor Economics,
Philipp Lentge: Leuphana University of Lüneburg

No 404, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: This paper investigates whether non-base compensation contributes to the gender pay gap. In wage decompositions, we find that lower bonus payments to women explain about 10% of the gap at the mean and at different quantiles of the unconditional wage distribution whereas the lower prevalence of shift premia and overtime pay among women is unimportant. Among managers, the contribution of bonuses to the mean gap more than doubles and is steadily rising as one moves up the wage distribution. Our findings suggest that gender di_erences in bonuses are an important contributor to the gender pay gap, particularly in top jobs.

Keywords: gender pay gap; bonus payments; shift premia; overtime pay; glass ceilings (search for similar items in EconPapers)
JEL-codes: J31 J71 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2021-07
New Economics Papers: this item is included in nep-eur and nep-hrm
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