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Gender Earnings Differentials in Total Pay, Base Pay, and Contingent Pay

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  • Keith W. Chauvin
  • Ronald A. Ash

Abstract

Using data from a 1988 survey of business school graduates, the authors analyze gender differentials in earnings by form of pay—total pay, base pay, and contingent pay—with controls for human capital, occupation, job level, and individual characteristics. The results indicate that within narrowly defined occupations and jobs, most of the unexplained difference in total pay between the men and women in the sample was due to gender differences in the portion of pay that was contingent on job performance. The greater importance of contingent pay in the earnings of the men than of the women may reflect differential treatment of men and women by firms, gender differences in performance, gender differences in risk preferences, or some other sorting mechanism.

Suggested Citation

  • Keith W. Chauvin & Ronald A. Ash, 1994. "Gender Earnings Differentials in Total Pay, Base Pay, and Contingent Pay," ILR Review, Cornell University, ILR School, vol. 47(4), pages 634-649, July.
    • Handle: RePEc:sae:ilrrev:v:47:y:1994:i:4:p:634-649
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    Cited by:

    1. Job Borrenbergs & Rui Vieira & Georgios Georgakopoulos, 2017. "Remuneration Committees’ Gender Composition as a Determinant of Executive Board Compensation Structure," International Business Research, Canadian Center of Science and Education, vol. 10(2), pages 135-146, February.
    2. Marta M. Elvira & Mary E. Graham, 2002. "Not Just a Formality: Pay System Formalization and Sex-Related Earnings Effects," Organization Science, INFORMS, vol. 13(6), pages 601-617, December.
    3. Lin Xiu & Morley Gunderson, 2013. "Performance Pay in China: Gender Aspects," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 124-147, March.
    4. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    5. Emilio J. Castilla, 2012. "Gender, Race, and the New (Merit-Based) Employment Relationship," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51, pages 528-562, April.

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