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The gender pay gap and performance pay: Is there room for discrimination?


Stancov, Vitalie; Janssen, Simon; Backes-Gellner, Uschi; Tuor, Simone (2011). The gender pay gap and performance pay: Is there room for discrimination? In: Society for the Advancement of Socio Economics, Madrid, 23 June 2011 - 25 June 2011.

Abstract

Although discrimination is the most prominent explanation for the gender pay gap, studies providing conclusive evidence are scarce. This paper examines whether discrimination is less severe under performance pay than under time-based pay. To identify an external and measurable source of discrimination we exploit the variation of social norms regarding equal pay for equal work across different regions. We hypothesize the influence of social norms to be smaller in performance than time-based pay because performance pay is more closely tied to workers' productivity and thus employers have less scope for discrimination. Our empirical results show a strong and significant effect of social norms for the time-based component of pay, whereas we cannot identify such an effect for the performance-based component of pay. Therefore, our paper provides a direct proof that discrimination is less severe under performance than time-based pay.

Abstract

Although discrimination is the most prominent explanation for the gender pay gap, studies providing conclusive evidence are scarce. This paper examines whether discrimination is less severe under performance pay than under time-based pay. To identify an external and measurable source of discrimination we exploit the variation of social norms regarding equal pay for equal work across different regions. We hypothesize the influence of social norms to be smaller in performance than time-based pay because performance pay is more closely tied to workers' productivity and thus employers have less scope for discrimination. Our empirical results show a strong and significant effect of social norms for the time-based component of pay, whereas we cannot identify such an effect for the performance-based component of pay. Therefore, our paper provides a direct proof that discrimination is less severe under performance than time-based pay.

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Additional indexing

Item Type:Conference or Workshop Item (Speech), refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Event End Date:25 June 2011
Deposited On:13 Feb 2012 08:04
Last Modified:07 Dec 2017 11:28
Related URLs:http://citation.allacademic.com/meta/p_mla_apa_research_citation/5/0/4/8/9/p504894_index.html
http://convention2.allacademic.com/one/sase/sase11/
Other Identification Number:merlin-id:4415

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