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Title: Essays on the Empirical Implications of Performance Pay Contracts

Citation Type: Dissertation/Thesis

Publication Year: 2010

Abstract: The use of performance-based payments to compensate rank and le workers in the U.S. has increased substantially since the 1980s. This dissertation presents three papers that examine the empirical implications of these compensation structures on the U.S. labour market. The rst paper investigates whether performance pay is contributing to the difference in residual wage inequality between the March and the Merged Outgoing Rotation Group (MORG) samples of the Current Population Survey (CPS). Lemieux (2006) and Autor, Katz, and Kearney (2008) show 1) that residual inequality is about 30% higher in the March CPS than in the MORG CPS, and 2) that this measure of inequality grew between 1970 and the late 1990s in the March CPS but was relatively stable in the MORG CPS. Understanding why there should be such a substantial dierence in residual inequality between the two CPS samples is important because they dier in their support for widely accepted theories of wage inequality. Drawing on detailed earnings information contained in the Medical Expenditure Panel Survey, I present results that suggest that performance pay is indeed playing a role in the discrepancy in residual inequality between the March and MORG CPS samples. The second paper examines whether employers that pay for performance learn . . .

Url: http://digitool.library.mcgill.ca/webclient/StreamGate?folder_id=0&dvs=1555604140533~823

User Submitted?: No

Authors: Hoon, Bok Hoong Young

Institution: McGill University

Department: Economics

Advisor: Daniel Parent

Degree: PhD

Publisher Location: Montreal

Pages:

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Other

Countries:

IPUMS NHGIS NAPP IHIS ATUS Terrapop