Gender Gaps in Performance Pay: New Evidence from Spain

de la Rica, Dolado, Vegas
2015 Annals of Economics and Statistics  
In this paper we use micro data from a large wage survey carried out in Spain during 2006 to analyze the magnitude of the gender gap in the performance-pay (PP) component of hourly wages. Under the presumption that PP is determined in a more competitive fashion than the other wage components, we argue that there should be less room for gender discrimination in PP. Accordingly, the gender PP gap be lower than in total pay. However, our finding is just the opposite. After controlling for
more » ... olling for observable characteristics, non-random selection into performance-pay jobs and segregation into different firms and occupations, the estimated adjusted gap in favour of men remains fairly high (around 30 log points). Further, we document a "glass ceiling" pattern in this gap throughout the distribution of PP. After examining alternative ways of rationalizing these findings, we conjecture that monopsonistic exploitation exerted by employers might be the one more consistent with our evidence. JEL Classification: J31, J33, J42, J71.
doi:10.15609/annaeconstat2009.117-118.41 fatcat:wbsl2lp4brafdosmx4ddxewjcm