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Performance‐related pay and the UK gender pay gap

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  • Melanie Jones
  • Ezgi Kaya

Abstract

Applying decomposition methods to data from the Annual Survey of Hours and Earnings, we highlight the importance of performance‐related pay to the contemporary UK gender pay gap. We find that the lower probability of females being employed in performance‐related pay jobs explains a sizeable proportion of the gender pay gap, particularly at the top end of the annual earnings distribution. The latter is driven by its influence within the private sector.

Suggested Citation

  • Melanie Jones & Ezgi Kaya, 2024. "Performance‐related pay and the UK gender pay gap," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(4), pages 512-529, October.
    • Handle: RePEc:bla:indres:v:63:y:2024:i:4:p:512-529
    DOI: 10.1111/irel.12352
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    1. Yannis Galanakis & Amanda Gosling, 2024. "Mind the (Gender Pay) Gap - The role of Board Gender Composition," Working Papers 045, The Productivity Institute.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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