Abstract

http://ssrn.com/abstract=2102434
 
 

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Performance Pay Systems and the Gender Wage Gap


Richard Fabling


Motu Economic and Public Policy Research Trust

Arthur Grimes


Motu Economic and Public Policy Research Trust

David C. Maré


Motu Economic and Public Policy Research Trust; University of Waikato - Economics

July 9, 2012

Motu Working Paper 12-08

Abstract:     
We examine the relationship between performance pay systems and wages, paying particular attention to gender differences in outcomes. At the firm level, estimates suggest average wages are unaffected by changes in performance pay practices, but that the within-firm distribution of wages is stretched. This latter result is explained by worker-level regressions, showing that male workers with initially higher expected wages are more likely to benefit from increased use of performance pay in the firm. Given the apparent absence of such an effect on female wages and the concentration of prime-age men in the top quartile of the wage distribution, women, on average, benefit less from the operation of performance pay systems.

Number of Pages in PDF File: 34

Keywords: Human resource management, personnel economics, gender wage gap, performance pay

JEL Classification: D21, J31, O31

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Date posted: July 9, 2012  

Suggested Citation

Fabling, Richard and Grimes, Arthur and Maré, David C., Performance Pay Systems and the Gender Wage Gap (July 9, 2012). Motu Working Paper 12-08. Available at SSRN: http://ssrn.com/abstract=2102434 or http://dx.doi.org/10.2139/ssrn.2102434

Contact Information

Richard Blaikie Fabling (Contact Author)
Motu Economic and Public Policy Research Trust ( email )
Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand
Arthur Grimes
Motu Economic and Public Policy Research Trust ( email )
19 Milne Terrace
Island Bay
Wellington 6002
New Zealand
David C. Mare
Motu Economic and Public Policy Research Trust ( email )
PO Box 24390
Wellington, 6021
New Zealand
64-4-9394250 (Phone)
HOME PAGE: http://www.motu.org.nz
University of Waikato - Economics
New Zealand
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