Not just a formality: Pay system formalization and sex-related earnings effects

Organization Science

Volumn 13, Issue 6, 2002, Pages 601-617

  Elvira, Marta M ^a,b   Graham, Mary E ^c  

^a INSEAD   (France)

^b UNIVERSITY OF CALIFORNIA   (United States)

^c CLARKSON UNIVERSITY   (United States)

Author keywords

Incentive Bonuses; Pay Formalization; Sex Composition

Indexed keywords

EID: 0036869226     PISSN: 10477039     EISSN: None     Source Type: Journal    
DOI: 10.1287/orsc.13.6.601.499     Document Type: Article

References (75)

1. Aigner, D.J., G.G. Cain. 1977. Statistical theories of discrimination in labor markets. Indust. and Labor Relations Rev. 30 175-187.
2. Anderson, C.D., D. Tomaskovic-Devey. 1995. Patriarchal pressures: An exploration of organizational processes that exacerbate and erode gender earnings inequality. Work and Occupations 22 328356.
3. Auster, E.R. 1989. Task characteristics as a budge between macro- and micro level research on salary inequality between men and women. Acad. Management Rev. 14 173-193.
4. _, R. Drazin. 1988. Sex inequality at higher levels in the hierarchy: An intraorganizational perspective. Sociological Inquiry 58 216-227.
5. Baron, J.N. 1991. Organizational evidence of ascription in labor markets. R.R. Cornwall and P.V. Wurnava, eds. New Approaches to Economic and Social Analyses of Discrimination. Praeger, New York, 113-143.
6. _, W.T. Bielby. 1980. Bringing the firms back in: Stratification, segmentation, and the organization of work. Amen Sociological Rev. 45 737-765.
7. _, A.E. Newman. 1990. For what it's worth: Organizations, occupations, and the value of work done by women and nonwhites. Amer. Sociological Rev. 55 155-175.
8. Barron, L.A. 2001. Ask and you shall receive?: Beliefs about salary negotiation. Unpublished manuscript, Graduate School of Management, University of California, Irvine, CA.
9. Bartol, K.M., D.C. Martin. 1988. Influences on managerial pay allocations: A dependency perspective. Personnel Psych. 41 361-378.
10. Becker, G. 1975. Human Capital, 2nd ed. National Bureau of Economic Research, New York.
11. Bergmann, B. 1986. The Economic Emergence of Women. Basic Books, New York.
12. Bird, C.E. 1990. High finance, small change: Women's increased representation in hank management, B. Reskin and P. Roos, eds. Job Queues, Gender Queues: Explaining Women's Inroads Into Male Occupations. Temple University Press, Philadelphia, PA.
13. Blau, F.D., M.A. Ferber, A.E. Winkler. 1998. The Economics of Women, Men, and Work, 3rd ed. Prentice Hall, Upper Saddle River, NJ.
14. Bridges, W.P., R.L. Nelson. 1989. Markets in hierarchies: Organizational and market influences on gender inequality in a state pay system. Amer. J. Sociology 95 616-658.
15. Carroll, M., J. Rubery. 1998. Women's pay in banking in the United Kingdom: Case study of XYZ Bank. J. Rubery, ed. Equal Pay in Europe? Closing the Gender Wage Gap. St. Martin's Press, Inc., New York, 213-230.
16. Chauvin, K.W., R.A. Ash. 1994. Gender earnings differentials in total pay, base pay, and contingent pay. Indust. and Labor Relations Rev. 47 634-649.
17. Dobbin, F., J. Sutton, J. Meyer, R. Scott. 1993. Equal opportunity law and the construction of internal labor markets. Amer. J. Sociology 99 396-427.
18. Doeringer, P.B., M.J. Piore. 1971. Internal Labor Markets and Manpower Analysis. Heath, Lexington, MA.
19. Ehrenberg, R.G., R.S. Smith. 2000. Modern Labor Economics, 7th ed. Addison Wesley Longman, New York.
20. Eisenhardt, K.M. 1988. Agency- and institutional-theory explanations: The case of retail sales compensation. Acad. Management J. 31 488-511.
21. England, P., G. Farkas, B.S. Kilbourne, T. Dou. 1988. Explaining occupational sex segregation and wages: Findings from a model with fixed effects. Amer. Sociological Rev. 53 544-558.
22. Epstein, R.A. 1993. Forbidden Grounds. The Case Against Employment Discrimination Laws. Harvard University Press, Cambridge, MA.
23. Finkelstein, S., D.C. Hambrick. 1990. Top-management-team tenure and organizational outcomes: The moderating role of managerial discretion. Admin. Sci. Quart. 35 484-503.
24. Fiske, S.T. 1998. Stereotyping, prejudice, and discrimination. D.T. Gilbert, S.T. Fiske, and G. Lindzey, eds. Handbook of Social Psychology. McGraw-Hill, New York, 357-411.
25. Freedman, S.M., J.R. Montanari. 1980. An integrative model of managerial reward allocation. Acad. Management Rev. 5 381-390.
26. Gaertner, S.L., J.F. Dovidio. 1986. The aversive form of racism. J.F. Dovidio and S.L. Gaertner, eds. Prejudice, Discrimination, and Racism. Academic Press, New York, 61-89.
27. Gerhart, B. 1990. Gender differences in current and starting salaries: The role of performance, college major, and job title. Indus. and Labor Relations Rev. 43 418-433.
28. _, N. El Cheikh. 1991. Earnings and percent female: A longitudinal study. Indus. Relations 30 62-78.
29. Goldin, C. 1986. Monitoring costs and occupational segregation by sex: A historical analysis, J. Labor Econom. 4 1-27.
30. Gomez-Mejia, L.R., D.B. Balkin. 1992. Compensation, Organization Strategy, and Firm Performance. Southwestern, Cincinnati, OH.
31. Graves, L.M. 1999. Gender bias in interviewers' evaluations of applicants. G.N. Powell, ed. Handbook of Gender and Work. Sage Publications, Thousand Oaks, CA, 145-164.
32. Groshen, E. 1991. The structure of the female/male wage differential: Is it who you are, what you do, or where you work? J. Human Resources 26 457-472.
33. Hardy, M.A. 1993. Regression with Dummy Variables. Sage Publications, Newbury Park, CA.
34. Heilman, M.E. 1980. The impact of situational factors on personnel decisions concerning women: Varying the sex composition of the applicant pool. Organ. Behavior and Human Performance 26 386-395.
35. Hewitt Associates. 2002. Economic conditions and the events of September g are prompting some companies to modify their 2002 salary increase projections. Retrieved January 30, 2002, from 〈was.hewitt.com/ebusiness/compensationcenter〉.
36. Huffman, M.L., S.C. Velasco. 1997. When more is less. Sex composition, organizations, and earnings in U.S. firms. Work and Occupations 24 214-244.
37. _, _, W.T. Bielby. 1996. Where sex composition matters most: Comparing the effects of job versus occupational sex composition on earnings. Sociological Focus 29 189-207.
38. Hultin, M., R. Szulkin. 1999. Wages and unequal access to organizational power: An empirical test of gender discrimination. Admin. Sci. Quart. 44 453-472.
39. Huselid, M.A. 1995. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Acad. Management J. 38 635-647.
40. Ibarra, H. 1993. Personal networks of women and minorities in management: A conceptual framework. Acad. Management Rev. 18 56-87.
41. Jacobs, J.A. 1999. The sex segregation of occupations: Prospects for the 21st century. G.N. Powell, ed. Handbook of Gender and Work. Sage Publications, Thousand Oaks, CA, 125-141.
42. Jacoby, S. 1985. Employing Bureaucracy. Columbia University Press, New York.
43. Kanter, R.M. 1977. Men and Women of the Corporation. Basic Books, New York.
44. Kessler-Harris, A, 1990. A Woman's Wage: Historical Meanings and Social Consequences. The University Press of Kentucky, Lexington, KY.
45. Kilbourne, B.S., P. England, G. Farkas, K. Beron, D. Weir. 1994. Returns to skill, compensating differentials, and gender bias: Effects of occupational characteristics on the wages of white women and men. Amer. J. Sociology 100 689-719.
46. Konrad, A.M., F. Linnehan. 1995. Formalized HRM structures: Coordinating equal employment opportunity or concealing organizational practices? Acad. Management J. 38 787-820.
47. Krieger, L.H. 1995. The content of our categories: A cognitive bias approach to discrimination and equal employment opportunity. Stanford Law Rev. 47 1161-1248.
48. Lawrence, B.S. 1997. The black box of organizational demography. Organ. Sci. 8 1-22.
49. MacPherson, D.A., B.T. Hirsch. 1995. Wages and sex composition: Why do women's jobs pay less? J. Labor Econom. 13 426-471.
50. Major, B. 1994. From social inequality to personal entitlement: The role of social comparisons, legitimacy appraisals, and group membership. Adv. in Experiment. Soc. Psych. 26 293-355.
51. Milkovich, G.T. 1988. A strategic perspective on compensation management. K.M. Rowland and G.R. Ferris, eds. Research in Personnel and Human Resources Management, vol. 6. JAI Press, Greenwich, CT, 263-288.
52. _, J.M. Newman. 2002. Compensation, 7th ed. McGraw-Hill Irwin, Boston, MA.
53. Murphy, K.R., J.N. Cleveland. 1995. Understanding Performance Appraisal. Sage Publications, Thousand Oaks, CA.
54. Nelson, R.L., W.P. Bridges. 1999. Legalizing Gender Inequality: Courts, Markets, and Unequal Pay for Women in America. Cambridge University Press, New York.
55. Nieva, V.F., B.A. Gutek. 1981. Women and Work: A Psychological Perspective. Praeger, New York.
56. Oaxaca, R. 1973. Male-female wage differentials in urban labor markets. Internat. Econom. Rev. 14 693-709.
57. Osterman, P. 1984. Internal Labor Markets, The MIT Press, Cambridge, MA.
58. _. 1987. Choice of employment systems in internal labor markets. Indust. Relations. 26 45-67.
59. Perry, E.L., A. Davis-Blake, C.T. Kulik. 1994. Explaining gender-based selection decisions: A synthesis of contextual and cognitive approaches. Acad. Management Rev. 19 786-820.
60. Petersen, T.K., L.A. Morgan. 1995. Separate and unequal: Occupation-establishment sex segregation and the gender wage gap. Amer. J. Sociology 101 329-365.
61. Pfeffer, J. 1989. A political perspective on careers: Interests, networks, and environments. M.B. Arthur, D.T. Hall, and B.S. Lawrence, eds. Handbook of Career Theory. Cambridge University Press, Cambridge, MA, 380-396.
62. Reskin, B.F. 2000. The proximate causes of employment discrimination. Contemporary Sociology 29 319-329.
63. _, D.B. McBrier. 2000. Why not ascription? Organizations' employment of male and female managers. Amer. Sociological Rev. 65 210-233.
64. _, P.A. Roos. 1990. Job Queues, Gender Queues: Explaining Women's Inroads Into Male Occupations. Temple University Press, Philadelphia, PA.
65. Roos, P.A., M.L. Gatta. 1999. The gender gap in earnings: Trends, explanations, and prospects. G. Powell, ed. Handbook of Gender and Work. Sage Publications, Thousand Oaks, CA, 95-123,
66. Rozelle, R.M., J.C. Baxter. 1981. Influence of role pressures on the perceiver: Judgments of videotaped interviews varying judge accountability and responsibility. J. Appl. Psych. 66 437-441.
67. Rubery, J. 1995. Performance-related pay and the prospects for gender pay equity. J. Management Stud. 32 637-654.
68. Sorensen, E. 1990. The crowding hypothesis and comparable worth. J. Human Resources 25 55-89.
69. Stroh, L.K., J.M. Brett, J.P. Baumann, J.P., A.H. Reilly. 1996. Agency theory and variable pay compensation strategies. Acad. Management J. 39 751-767.
70. Tajfel, H. 1982. Social Identity and Intergroup Relations. Cambridge University, Cambridge, U.K.
71. Tam, T. 1997. Sex segregation and occupational gender inequality in the United States: Devaluation or specialized training? Amer. J. Sociology 102 1652-1692.
72. Tsui, A.S., B.A. Gutek. 1999. Demographic Differences in Organizations: Current Research and Future Directions. Lexington Books, Lanham, MD.
73. U.S. Department of Labor. 1999. Employment standards administration press release: Texaco to pay $ 3.1 million to women professionals and executives in largest pay discrimination settlement. Retrieved January 6, 〈http://dol.gov/opa/public/media/press/esa/〉.
74. Weber, M. 1946. Bureaucracy. H.H. Gerth and C.W. Mills, trans. and eds. From Max Weber: Essays in Sociology. Oxford University Press, New York, 196-244.
75. Weeden, R., C. Rosen, E. Carberry, S. Rodrick. 2001. Current Practices in Stock Option Plan Design, 2nd ed. The National Center for Employee Ownership, Oakland, CA.