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Racial Earnings Differentials and Performance Pay

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  • John S. Heywood
  • Patrick L. O’Halloran

Abstract

This paper presents an information model in which workers receiving output-based pay experience less racial earnings discrimination than those receiving time rates and supervisory evaluations. Tests using the National Longitudinal Survey of Youth reveal no racial wage differential among male workers paid output-based pay while confirming a significant differential among those paid time rates. In addition, the racial wage differential among those receiving bonus pay, usually based on supervisory evaluations, tends to be larger than for those not receiving such bonuses.

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File URL: http://jhr.uwpress.org/cgi/reprint/XL/2/435
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 40 (2005)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:40:y:2005:i:2:p435-452

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. John S. Heywood & Daniel Parent, 2009. "Performance Pay and the White-Black Wage Gap," Cahiers de recherche 0916, CIRPEE.
  2. Alan Manning & Farzad Saidi, 2008. "Understanding the gender pay gap: what's competition got to do with it?," LSE Research Online Documents on Economics 28510, London School of Economics and Political Science, LSE Library.
  3. Cornelissen, Thomas & Jirjahn, Uwe, 2012. "September 11th and the earnings of Muslims in Germany—The moderating role of education and firm size," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 490-504.
  4. Colin P. Green & John S. Heywood & Nikolaos Theodoropoulos, 2012. "Performance Pay and Ethnic Wage Differences in Britain," University of Cyprus Working Papers in Economics 06-2012, University of Cyprus Department of Economics.
  5. Pierre-Guillaume Méon & Ariane Szafarz, 2011. "The Modern Corporation as a Safe Haven for Taste-Based Discrimination: An Agency Model of Hiring Decisions," ULB Institutional Repository 2013/88635, ULB -- Universite Libre de Bruxelles.
  6. Victor Maas & Raquel Torres-González, 2011. "Subjective Performance Evaluation and Gender Discrimination," Journal of Business Ethics, Springer, vol. 101(4), pages 667-681, July.

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