Performance pay and assortative matching

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

Research output: Contribution to journalArticle

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
JournalScottish Journal of Political Economy
Early online date25 Sep 2019
DOIs
Publication statusE-pub ahead of print - 25 Sep 2019

Keywords

  • performance pay
  • assortative matching

ASJC Scopus subject areas

  • Economics and Econometrics
  • Sociology and Political Science

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