Non-base compensation and the gender pay gap

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This paper investigates whether non-base compensation contributes to the gender pay gap (GPG). Using administrative data from Germany, we find in wage decompositions that lower bonus payments to women explain about 10 per cent 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 differences in bonuses are an important contributor to the GPG, particularly in top jobs.
Original languageEnglish
JournalLabour - Review of labour economics and industrial relations
Number of pages25
ISSN1121-7081
DOIs
Publication statusE-pub ahead of print - 01.07.2022

DOI