Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Performance pay and ethnic earnings differences in Britain
AU - Green, Colin P.
AU - Heywood, John S.
AU - Theodoropoulos, Nikolaos
PY - 2014/7
Y1 - 2014/7
N2 - In the first British study, we show that the ethnic earnings gap amongst performance pay jobs is smaller than that amongst time rate jobs. This partially reflects sorting but persists with diminished magnitude in fixed effect estimates. Although varying somewhat with specification, quantile decompositions show that the smaller ethnic earnings gap is driven by bonus payments in the upper middle portion of the earnings distribution. These findings differ dramatically from those for the USA in which performance pay has been associated with larger negative racial differentials especially at the top of the earnings distribution.
AB - In the first British study, we show that the ethnic earnings gap amongst performance pay jobs is smaller than that amongst time rate jobs. This partially reflects sorting but persists with diminished magnitude in fixed effect estimates. Although varying somewhat with specification, quantile decompositions show that the smaller ethnic earnings gap is driven by bonus payments in the upper middle portion of the earnings distribution. These findings differ dramatically from those for the USA in which performance pay has been associated with larger negative racial differentials especially at the top of the earnings distribution.
KW - WAGE DIFFERENTIALS
KW - LABOR-MARKET
KW - OUTPUT PAY
KW - PRODUCTIVITY
KW - GENDER
KW - RACE
KW - IMMIGRANTS
KW - GAPS
U2 - 10.1093/oep/gpt035
DO - 10.1093/oep/gpt035
M3 - Journal article
VL - 66
SP - 798
EP - 823
JO - Oxford Economic Papers
JF - Oxford Economic Papers
SN - 0030-7653
IS - 3
ER -