Do women respond less to performance pay? Building evidence from multiple experiments

Bandiera, Oriana ORCID: 0009-0002-6817-793X, Fischer, Gregory, Prat, Andrea and Ytsma, Erina (2021) Do women respond less to performance pay? Building evidence from multiple experiments. American Economic Review: Insights, 3 (4). pp. 435-54. ISSN 2640-205X

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Abstract

Performance pay increases productivity but also earnings inequality. Can it contribute to the gender gap because women are less responsive? We provide answers by aggregating evidence from existing experiments on performance incentives with male and female subjects, regardless of whether they test for gender differences. Using a Bayesian hierarchical model we estimate both the average effect and heterogeneity across studies. We find that the gender response difference is close to zero and heterogeneity across studies is small, while performance pay increases output by 0.36 standard deviations on average. The data thus support agency theory for men and women alike.

Item Type:	Article
Additional Information:	© 2021 The Authors
Divisions:	Economics STICERD
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HQ The family. Marriage. Woman
Date Deposited:	02 Sep 2021 10:24
Last Modified:	09 May 2025 18:20
URI:	http://eprints.lse.ac.uk/id/eprint/111841

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