Pay for Performance and Compensation Inequality: Evidence from the ECEC

Maury Gittleman () and Brooks Pierce
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Brooks Pierce: Maury Gittleman is a Research Economist at the Bureau of Labor Statistics. Brooks Pierce is a Research Economist at the Bureau of Labor Statistics.

ILR Review, 2015, vol. 68, issue 1, 28-52

Abstract: This article examines the relationship between performance-based pay and widening wage inequality using data from the Employer Costs for Employee Compensation (ECEC). The results suggest that jobs using performance-based pay have made only a modest contribution to increased inequality during the 1994 to 2010 period. These results contrast with those reported by Lemieux, MacLeod, and Parent (2009), who investigated the relationship between performance-based pay and wage inequality using the Panel Study of Income Dynamics. They found that pay for performance accounted for about one-fifth of the growth in the variance of male wages between the late 1970s and the early 1990s, and for almost all of the increase in wage inequality in the top quintile during the same period.

Keywords: pay for performance; compensation inequality; incentive pay (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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Working Paper: Pay for Performance and Compensation Inequality: Evidence from the ECEC (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:68:y:2015:i:1:p:28-52

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