%0 Report
        %A Lemieux, Thomas
%A MacLeod, W. Bentley
%A Parent, Daniel
        %T Performance Pay and Wage Inequality
        %D 2007
        %8 2007 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 2850
        %U https://www.iza.org/publications/dp2850
        %X 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).
        %K incentive pay
%K bonus pay
%K performance pay
%K compensation
%K wage inequality