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 Sept 2019 |
| DOIs | |
| Publication status | Published - Sept 2021 |
Keywords
- performance pay
- assortative matching
Access to Document
- Accepted Manuscript
This is the peer reviewed version of the following article: Bender, KA, Green, CP, Heywood, JS. Performance pay and assortative matching. Scott J Polit Econ. 2021; 68: 485– 493., 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.