Performance pay and wage inequality
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Author
Contributions
- MacLeod, W. Bentley 1954- - Contributor
- Parent, Daniel. - Contributor
- National Bureau of Economic Research. - Contributor
Publication
2007 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts
Language
English
Word Count
11,250 words, Guess
Page Count
45 pages
Identifiers
- OCLC Control Number153168896
- Open LibraryOL17634129M
Description
"We document that an increasing fraction of jobs in the U.S. labor market explicitly pay workers for their performance using bonuses, commissions, or piece-rates. We find that compensation in performance-pay jobs is more closely tied to both observed (by the econometrician) and unobserved productive characteristics of workers. Moreover, the growing incidence of performance-pay can explain 24 percent of the growth in the variance of male wages between the late 1970s and the early 1990s, and accounts for nearly all of the top-end growth in wage dispersion(above the 80th percentile)."
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