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Non-Base Compensation and the Gender Pay Gap

Author

Listed:
  • Boris Hirsch

    (Leuphana University of Luneburg, Halle Institute for Economic Research, and IZA Institute of Labor Economics,)

  • Philipp Lentge

    (Leuphana University of Lüneburg)

Abstract

This paper investigates whether non-base compensation contributes to the gender pay gap. In wage decompositions, we find that lower bonus payments to women explain about 10% of the gap at the mean and at different quantiles of the unconditional wage distribution whereas the lower prevalence of shift premia and overtime pay among women is unimportant. Among managers, the contribution of bonuses to the mean gap more than doubles and is steadily rising as one moves up the wage distribution. Our findings suggest that gender di_erences in bonuses are an important contributor to the gender pay gap, particularly in top jobs.

Suggested Citation

  • Boris Hirsch & Philipp Lentge, 2021. "Non-Base Compensation and the Gender Pay Gap," Working Paper Series in Economics 404, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:404
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    gender pay gap; bonus payments; shift premia; overtime pay; glass ceilings;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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