Performance pay and assortative matching

Keith A. Bender; Colin P. Green; John S. Heywood

doi:10.1111/sjpe.12232

Performance pay and assortative matching

Keith A. Bender, Colin P. Green, John S. Heywood^* (Corresponding Author)

^*Corresponding author for this work

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

We show that couples sort on performance pay with dual receipt couples much more likely than predicted by random. In addition, we show that the return to performance pay appears largely invariant to whether or not one's spouse earns performance pay. This implies that the distribution of family income will be less equitable than that of individual income as sorting concentrates the performance pay return among households with higher pay.

Original language	English
Pages (from-to)	485-493
Number of pages	9
Journal	Scottish Journal of Political Economy
Volume	68
Issue number	4
Early online date	25 Sep 2019
DOIs	https://doi.org/10.1111/sjpe.12232
Publication status	Published - 1 Sep 2021

Keywords

performance pay
assortative matching

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10.1111/sjpe.12232Licence: Unspecified

Accepted Manuscript
This is the peer reviewed version of the following article: [FULL CITE], which has been published in final form at https://doi.org/10.1111/sjpe.12232. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Accepted author manuscript, 426 KBLicence: Unspecified

Cite this

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AB - We show that couples sort on performance pay with dual receipt couples much more likely than predicted by random. In addition, we show that the return to performance pay appears largely invariant to whether or not one's spouse earns performance pay. This implies that the distribution of family income will be less equitable than that of individual income as sorting concentrates the performance pay return among households with higher pay.

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Performance pay and assortative matching

Abstract

Keywords

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