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

Isea Cieply (), Laura Barros (), Alexander Silbersdorff (), Thomas Kneib () and Krisztina Kis-Katos ()
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Isea Cieply: University of Goettingen
Laura Barros: University of Goettingen
Alexander Silbersdorff: University of Goettingen
Thomas Kneib: University of Goettingen
Krisztina Kis-Katos: University of Goettingen

No 18376, IZA Discussion Papers from IZA Network @ LISER

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.

Keywords: gender pay gap; gender economics; wage differentials; wage negotiations; professorial salaries (search for similar items in EconPapers)
JEL-codes: E24 J01 J16 J31 (search for similar items in EconPapers)
Date: 2026-02
New Economics Papers: this item is included in nep-gen, nep-hrm, nep-lma and nep-sog
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