EconPapers    
Economics at your fingertips  
 

Performance Pay and Wage Inequality

Thomas Lemieux (), W. Bentley Macleod and Daniel Parent ()

No 13128, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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).

JEL-codes: J31 J33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-lab
Date: 2007-05
Note: LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed

Published as Thomas Lemieux & W. Bentley MacLeod & Daniel Parent, 2009. "Performance Pay and Wage Inequality-super-," The Quarterly Journal of Economics, MIT Press, vol. 124(1), pages 1-49, February.

Downloads: (external link)
http://www.nber.org/papers/w13128.pdf (application/pdf)

Related works:
Journal Article: Performance Pay and Wage Inequality (2009) Downloads
Working Paper: Performance Pay and Wage Inequality (2007) Downloads
Working Paper: PERFORMANCE PAY AND WAGE INEQUALITY (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:13128

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w13128

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-09-21
Handle: RePEc:nbr:nberwo:13128