Documents Pierce, Brooks 2 results

"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."

"The authors estimate inter-industry wage differentials using the Bureau of Labor Statistics's National Compensation Survey (NCS) dataset. The NCS dataset has a number of distinct advantages over household survey datasets typically used for this purpose, in part because its establishment data contain information on job content and more accurate measures of industry and occupation. The authors find that controlling for job functions substantially lowers inter-industry wage variation. To the extent that job function proxies for productivity, a substantial portion of inter-industry wage variation may be explained by worker sorting on (observed) ability."