TY  - RPRT
        AU  - Lemieux, Thomas
AU  - MacLeod, W. Bentley
AU  - Parent, Daniel
        TI  - Performance Pay and Wage Inequality
        PY  - 2007/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2850
        UR  - https://www.iza.org/index.php/publications/dp2850
        AB  - 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).
        KW  - incentive pay
KW  - bonus pay
KW  - performance pay
KW  - compensation
KW  - wage inequality
        ER  -