Gender earnings differentials and pay structure of Italian family managers

This paper analyses a dimension of the gender pay gap that has received so far a limited attention and that concerns not the level but the form of pay. The econometric analysis we performed has considered a fairly homogenous type of occupation represented by family management and with a great bargaining power in setting their rewards. With this strategy we aim at estimating gender disparities not driven by sex segregation by positions in firm hierarchy, but disparities more likely linked to preferences and identity. Probit models have been estimated to test whether or not the difference between women and men in pay structure of family managers (fixed salary or variable earnings) is statistically significant. We obtain that the female presence in top executive jobs, even after controlling for a large set of firm and workplace characteristics, is associated with a substantial lower incidence of the variable payment component. These gender differences in the structure of compensation packages are confirmed by IV Probit estimates that address potential omitted variables and endogeneity biases. We conclude that human capital factors, sectoral segregation or differences between firms are not the only drivers of gender differentials in the form of pay. We also suggest that lower representation of women in variable earning schemes might be an indicator of their minor attitudes toward competition.