Gender gaps in performance pay

The competitive paradigm predicts equivalent wages for equivalent workers, but significant gender gaps persist in many labor markets. This column analyses the gap in earnings between Spanish men and women, focusing on performance-related pay. It shows a strikingly large gap in pay and suggests that employer beliefs about unbalanced household tasks and outside options generate “a marriage premium” for males and a “marriage penalty” for women. Read the complete article on EUVOX here.