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Gender Pay Gap across Cultures

Author

Listed:
  • Natasha Burns
  • Kristina Minnick
  • Jeffry Netter
  • Laura Starks

Abstract

We employ a cross-country sample to examine whether cultural differences help explain gender compensation variations across corporate executives. The results show that the cultural differences, which are embedded in societies from long prior to the compensation decisions, provide significant explanatory power to the observed gender gap in executive compensation. Using an Oaxaca-Blinder decomposition combined with variables that have previously been shown to be significant determinants of executive compensation, we find that adding cultural measures to the model increases the explanatory power from 44% to 95% of the gender compensation gap.

Suggested Citation

  • Natasha Burns & Kristina Minnick & Jeffry Netter & Laura Starks, 2022. "Gender Pay Gap across Cultures," NBER Working Papers 30100, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30100
    Note: CF
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    More about this item

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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