Multiple disadvantage and wage growth: The effect of merit pay on pay gaps

Journal article


Woodhams, C, Lupton, B, Perkins, G and Cowling, M 2015. Multiple disadvantage and wage growth: The effect of merit pay on pay gaps. Human Resource Management. https://doi.org/10.1002/hrm.21692
AuthorsWoodhams, C, Lupton, B, Perkins, G and Cowling, M
Abstract

This article concerns rates of wage growth among women and minority groups and their impact on pay gaps. Specifically, it focuses on the pay progression of people with more than one disadvantaged identity, and on the impact of merit pay. Recent research indicates that pay gaps for people in more than one disadvantaged identity category are wider than those with a single‐disadvantaged identity. It is not known whether these gaps are closing, at what rate, and whether all groups are affected equally; nor is it known whether merit pay alleviates or exacerbates existing pay gaps. In addressing these issues, the analysis draws on longitudinal payroll data from a large UK‐based organization. Results show that pay gaps are closing; however, the rate of convergence is slow relative to the size of existing pay disparities, and slowest of all for people with disabilities. When the effect of merit pay is isolated, it is found to have a small positive effect in reducing pay gaps, and this effect is generally larger for dual/multiple‐disadvantaged groups. These findings run counter to the well‐established critique of merit pay in relation to equality outcomes. The implications of this are discussed, and an agenda for research and practice is set out. © 2015 Wiley Periodicals, Inc.

Year2015
JournalHuman Resource Management
PublisherWiley
ISSN904848
1099050X
Digital Object Identifier (DOI)https://doi.org/10.1002/hrm.21692
Web address (URL)http://hdl.handle.net/10545/624064
hdl:10545/624064
Publication dates24 Feb 2015
Publication process dates
Deposited06 Aug 2019, 15:37
ContributorsUniversity of Exeter, Manchester Metropolitan University and Brighton Business School
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