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Don't Forget the Gravy! Are Bonuses and Time Rates Complements?

Research output: Working paper

Published

Standard

Don't Forget the Gravy! Are Bonuses and Time Rates Complements? / Green, Colin; Heywood, John.
The Department of Economics, 2012. (Economics Working Paper Series).

Research output: Working paper

Harvard

Green, C & Heywood, J 2012 'Don't Forget the Gravy! Are Bonuses and Time Rates Complements?' Economics Working Paper Series, The Department of Economics.

APA

Green, C., & Heywood, J. (2012). Don't Forget the Gravy! Are Bonuses and Time Rates Complements? (Economics Working Paper Series). The Department of Economics.

Vancouver

Green C, Heywood J. Don't Forget the Gravy! Are Bonuses and Time Rates Complements? The Department of Economics. 2012. (Economics Working Paper Series).

Author

Green, Colin ; Heywood, John. / Don't Forget the Gravy! Are Bonuses and Time Rates Complements?. The Department of Economics, 2012. (Economics Working Paper Series).

Bibtex

@techreport{f8e5fbeca5a14b6b80670da56f8a2347,
title = "Don't Forget the Gravy! Are Bonuses and Time Rates Complements?",
abstract = "The press often depicts bonuses as extra payments to the already well compensated and calls for reform. Yet, these calls typically ignore the efficiency argument that bonuses are potentially risky performance pay that substitute for salary compensation. This paper uses representative UK data to estimate that bonuses appear not to substitute for salary in cross-sectional estimates. Yet, when controlling for time invariant characteristics in panel data, bonuses emerge as substitutes. Each pound of bonus comes at a cost of 40 pence in other earnings. The degree of substitution is far larger at the bottom of the earnings distribution and far smaller at the top of the earnings distribution.",
author = "Colin Green and John Heywood",
note = "2012-008",
year = "2012",
language = "English",
series = "Economics Working Paper Series",
publisher = "The Department of Economics",
type = "WorkingPaper",
institution = "The Department of Economics",

}

RIS

TY - UNPB

T1 - Don't Forget the Gravy! Are Bonuses and Time Rates Complements?

AU - Green, Colin

AU - Heywood, John

N1 - 2012-008

PY - 2012

Y1 - 2012

N2 - The press often depicts bonuses as extra payments to the already well compensated and calls for reform. Yet, these calls typically ignore the efficiency argument that bonuses are potentially risky performance pay that substitute for salary compensation. This paper uses representative UK data to estimate that bonuses appear not to substitute for salary in cross-sectional estimates. Yet, when controlling for time invariant characteristics in panel data, bonuses emerge as substitutes. Each pound of bonus comes at a cost of 40 pence in other earnings. The degree of substitution is far larger at the bottom of the earnings distribution and far smaller at the top of the earnings distribution.

AB - The press often depicts bonuses as extra payments to the already well compensated and calls for reform. Yet, these calls typically ignore the efficiency argument that bonuses are potentially risky performance pay that substitute for salary compensation. This paper uses representative UK data to estimate that bonuses appear not to substitute for salary in cross-sectional estimates. Yet, when controlling for time invariant characteristics in panel data, bonuses emerge as substitutes. Each pound of bonus comes at a cost of 40 pence in other earnings. The degree of substitution is far larger at the bottom of the earnings distribution and far smaller at the top of the earnings distribution.

M3 - Working paper

T3 - Economics Working Paper Series

BT - Don't Forget the Gravy! Are Bonuses and Time Rates Complements?

PB - The Department of Economics

ER -