Pay for Performance and Compensation Inequality

Evidence from the Ecec

Bibliographic Data

ID3402222
AuthorsMaury Gittleman (0000-0001-6669-2378), Brooks Pierce (Maury Gittleman is a Research Economist at the Bureau of Labor Statistics. Brooks Pierce is a Research Economist at the Bureau of Labor Statistics.)
Year2015
Volume68
Issue1
Pages28-52
Publication date2015-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0019793914556241
OpenAlexW2238439403
LanguageEN
Citations received4
References cited19

This article examines the relationship between performance-based pay and widening wage inequality using data from the Employer Costs for Employee Compensation (ECEC). The results suggest that jobs using performance-based pay have made only a modest contribution to increased inequality during the 1994 to 2010 period. These results contrast with those reported by Lemieux, MacLeod, and Parent (2009), who investigated the relationship between performance-based pay and wage inequality using the Panel Study of Income Dynamics. They found that pay for performance accounted for about one-fifth of the growth in the variance of male wages between the late 1970s and the early 1990s, and for almost all of the increase in wage inequality in the top quintile during the same period

Compensation (psychology) · Contrast (vision) · Demographic economics · Econometrics · Economic inequality · Economics · Incentive · Inequality · Labour economics · Microeconomics · Panel data · Performance-related pay · Variance (accounting) · Wage · Wage Inequality · Employment and Welfare Studies · Income, Poverty, and Inequality · Labor market dynamics and wage inequality · Mathematics · Psychology

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