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Performance pay and assortative matching

Author

Listed:
  • Keith A. Bender
  • Colin P. Green
  • John S. Heywood

Abstract

We show that couples sort on performance pay with dual receipt couples much more likely than predicted by random. In addition, we show that the return to performance pay appears largely invariant to whether one's spouse earns performance pay. The major exception is that among the college educated, the return to performance pay is larger for women when their spouse also receives performance pay. Thus, dual receipt households concentrate the returns to performance pay hinting that performance pay may influence the distribution of household income.

Suggested Citation

  • Keith A. Bender & Colin P. Green & John S. Heywood, 2021. "Performance pay and assortative matching," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(4), pages 485-493, September.
    • Handle: RePEc:bla:scotjp:v:68:y:2021:i:4:p:485-493
    DOI: 10.1111/sjpe.12232
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    References listed on IDEAS

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