A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2021; you can also visit the original URL.
The file type is
An increasing fraction of jobs in the U.S. labor market explicitly pay workers for their performance using a bonus, a commission, or a piece rate. In this paper, we look at the e¤ect of the growing incidence of performance pay on wage inequality. The basic premise of the paper is that performance pay jobs have a more "competitive" pay structure that rewards productivity di¤erences more than other jobs. Consistent with this view, we show that compensation in performance pay jobs is more closelydoi:10.3386/w13128 fatcat:3zmxezgjyzhzfjo75bxeqw6tyy