Performance pay and assortative matching

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

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-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 languageEnglish
Pages (from-to)485-493
Number of pages9
JournalScottish Journal of Political Economy
Volume68
Issue number4
Early online date25 Sep 2019
DOIs
Publication statusPublished - 1 Sep 2021

Keywords

  • performance pay
  • assortative matching

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