Non-Base Compensation and the Gender Pay Gap

Boris Hirsch () and Philipp Lentge ()
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Boris Hirsch: Leuphana University Lüneburg
Philipp Lentge: Leuphana University Lüneburg

No 14551, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 differences 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: 30 pages
Date: 2021-07
New Economics Papers: this item is included in nep-eur, nep-gen, nep-hrm and nep-lma
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Published - published in: Labour, 2022, 36 (3), 277-301

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