Skip to main content

Performance-related pay and gender wage differences

Buy Article:

$55.00 plus tax (Refund Policy)

Abstract:

We study the impact of performance-related pay (PRP) on gender wage differences using Finnish-linked employer–employee panel data. Controlling for unobserved person and firm effects, we find that bonuses increase women’s earnings slightly less than men’s, but the economic significance of the difference is negligible. Piece rates and reward rates, however, tend to increase gender wage differentials. Thus, the nature of a PRP plan is important for gauging the impact of PRP on gender wage differentials. A comparison with OLS results shows the importance of controlling for an unobserved person and firm effects.

Keywords: J16; J33; M52; compensation; gender; linked employer–employee data; panel data

Document Type: Research Article

DOI: https://doi.org/10.1080/00036846.2013.824546

Affiliations: 1: Labour Institute for Economic Research, Pitkänsillanranta 3 A, 00530, Helsinki, Finland 2: The Research Institute of the Finnish Economy, Lönnrotinkatu 4 B, 00210, Helsinki, Finland

Publication date: 2013-12-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more