Performance pay and ethnic earnings differences in Britain

C-Tier
Journal: Oxford Economic Papers
Year: 2014
Volume: 66
Issue: 3
Pages: 798-823

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:66:y:2014:i:3:p:798-823.
Journal Field
General
Author Count
3
Added to Database
2026-01-25