Performance Pay, Competitiveness, and the Gender Wage Gap: Evidence from the United States

11 Pages Posted: 25 Oct 2014

See all articles by Andrew McGee

Andrew McGee

Simon Fraser University (SFU)

Peter McGee

University of Arkansas

Jessica Pan

National University of Singapore (NUS)

Abstract

Evidence that women are less likely to opt into competitive compensation schemes in the laboratory has generated speculation that a gender difference in competitiveness contributes to the gender wage gap. Using data from the NLSY79 and NLSY97, we show that women are less likely to be employed in jobs using competitive compensation. The portion of the gender wage gap explained by gender segregation in compensation schemes is small in the NLSY79 but somewhat larger in the NLSY97 – suggesting an increasing role for competitiveness in explaining the gender wage gap.

Keywords: gender wage gap, competitiveness, performance pay

JEL Classification: J16, A12

Suggested Citation

McGee, Andrew and McGee, Peter and Pan, Jessica, Performance Pay, Competitiveness, and the Gender Wage Gap: Evidence from the United States. IZA Discussion Paper No. 8563, Available at SSRN: https://ssrn.com/abstract=2514756

Andrew McGee (Contact Author)

Simon Fraser University (SFU) ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada

Peter McGee

University of Arkansas ( email )

Fayetteville, AR 72701
United States

Jessica Pan

National University of Singapore (NUS) ( email )

1E Kent Ridge Road
NUHS Tower Block Level 7
Singapore, 119228
Singapore

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
49
Abstract Views
411
PlumX Metrics