Wage discrimination by gender and performance evaluation

Abstract

This paper has a twofold aim: Analyse the diffusion of different types of performance pay and the gender differences occurring in the access to this form of compensation Analyse to what extent performance-related pay systems impact on the gender wage gap and on the effort-reward balance To reply to these questions the 6th European Working Conditions Survey is used as it provides information on wages, working conditions and systems of pay evaluation. Oaxaca-Blinder decomposition is then used to highlight the contribution of the different Performance Pay types on the wage differential by gender. The results show a lower access of women to Performance-related compensation systems and a positive contribution of the latter in widening the gender pay gap.