Arbeitspapier

The Performance Pay Premium: How Big Is It and Does It Affect Wage Dispersion?

Using nationally representative linked employer-employee data we find one-quarter of employees in Britain are paid for performance. The log hourly wage gap between performance pay and fixed pay employees is .36 points. This falls to .15 log points after controlling for observable demographic, job and workplace characteristics. It falls still further to .10 log points when comparing "like" employees in the same workplace, indicating that performance pay contracts are used in higher paying workplaces. The premium rises markedly as one moves up the wage distribution: it is seven times higher at the 90th percentile than it is at the 10th percentile in the wage distribution (.42 log points compared to .06 log points).

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 8360

Klassifikation
Wirtschaft
Compensation Packages; Payment Methods
Thema
wages
wage inequality
performance pay
bonuses

Ereignis
Geistige Schöpfung
(wer)
Bryson, Alex
Forth, John
Stokes, Lucy
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bryson, Alex
  • Forth, John
  • Stokes, Lucy
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2014

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