Arbeitspapier

Performance-related Pay and the UK Gender Pay Gap

This paper explores the role of performance-related pay to the UK gender pay gap at the mean and across the earnings distribution. Applying decomposition methods to data from the Annual Survey of Hours and Earnings, we find that performance-related pay is an important but neglected factor, with the lower probability of females being employed in performance-related pay jobs explaining 12 per cent of the observed mean gender pay gap and making a larger contribution than many work-related characteristics routinely included in studies of this nature. Driven by its influence in the private sector, employment in performance-related pay jobs is more important in explaining the gender pay gap at the top end of the wage distribution, consistent with gender differences in receipt of bonus payments. Gender differences in the reward to performance-related pay jobs have a further, but more modest, role in widening the national and private sector mean gender pay gap.

Language
Englisch

Bibliographic citation
Series: GLO Discussion Paper ; No. 1211

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Compensation Packages; Payment Methods
Public Sector Labor Markets
Labor Discrimination
Subject
gender pay gap
performance-related pay
earnings distribution
sector

Event
Geistige Schöpfung
(who)
Jones, Melanie
Kaya, Ezgi
Event
Veröffentlichung
(who)
Global Labor Organization (GLO)
(where)
Essen
(when)
2022

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
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Object type

  • Arbeitspapier

Associated

  • Jones, Melanie
  • Kaya, Ezgi
  • Global Labor Organization (GLO)

Time of origin

  • 2022

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