The gender pay gap: Pay for performance and sorting across employers

Author: Michelle Lowry

We document a gender pay gap among business professors at Florida public universities. Part of this gap is driven by the fact that females are disproportionately likely to work at schools with low pay, controlling for faculty productivity. However, this sorting effect does not completely explain our findings: Using strict fixed effects to control for discipline, employer, rank, productivity, and experience, we find that women are paid approximately 3.5% less than men. Women’s pay is less sensitive to their publication performance, and the pay gap is economically largest among full professors.