Performance Pay and Ethnic Wage Differences in Britain
In the first study using British data, we show that the average wage advantage of holding a performance pay job is greater for minorities than that for Whites. This generates a smaller ethnic wage gap among performance pay jobs than among time rate jobs. Yet, this pattern is driven by those receiving bonuses not those receiving performance related pay and it is evident only for Asians and for those in managerial jobs. Moreover, it is partially driven by sorting in which the more able take bonus jobs. Nonetheless, the basic results persist with diminished magnitude in fixed effect estimates. These findings differ dramatically from those for United States in which bonuses appear to increase racial differentials especially at the top of the earnings distribution.
|Date of creation:||May 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.econ.ucy.ac.cy|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John S. Heywood & Patrick L. O’Halloran, 2005. "Racial Earnings Differentials and Performance Pay," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
- Daniel Parent & John S. Heywood, 2009.
"Performance Pay And The White-Black Wage Gap,"
Departmental Working Papers
2009-07, McGill University, Department of Economics.
- Heywood, John S. & Parent, Daniel, 2009. "Performance Pay and the White-Black Wage Gap," CLSSRN working papers clsrn_admin-2009-42, Vancouver School of Economics, revised 22 Jul 2009.
- John S. Heywood & Daniel Parent, 2009. "Performance Pay and the White-Black Wage Gap," Cahiers de recherche 0916, CIRPEE.
- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
- Nick Bloom & John Van Reenen, 2010.
"Human resource management and productivity,"
LSE Research Online Documents on Economics
28730, London School of Economics and Political Science, LSE Library.
- Bloom, Nicholas & Van Reenen, John, 2010. "Human Resource Management and Productivity," CEPR Discussion Papers 7849, C.E.P.R. Discussion Papers.
- Nicholas Bloom & John Van Reenen, 2010. "Human Resource Management and Productivity," NBER Working Papers 16019, National Bureau of Economic Research, Inc.
- Nicholas Bloom & John Van Reenen, 2010. "Human Resource Management and Productivity," CEP Discussion Papers dp0982, Centre for Economic Performance, LSE.
- Clark, Ken & Drinkwater, Stephen, 2005.
"Dynamics and Diversity: Ethnic Employment Differences in England and Wales, 1991-2001,"
IZA Discussion Papers
1698, Institute for the Study of Labor (IZA).
- Kenneth Clark & Stephen Drinkwater, 2006. "Dynamics and Diversity: Ethnic Employment Differences in England and Wales, 1991 - 2001," School of Economics Discussion Papers 1206, School of Economics, University of Surrey.
- Méon, Pierre-Guillaume & Szafarz, Ariane, 2011.
"The modern corporation as a safe haven for taste-based discrimination: An agency model of hiring decisions,"
Elsevier, vol. 18(4), pages 487-497, August.
- 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.
- Christian Dustmann & Nikolaos Theodoropoulos, 2006.
"Ethnic Minority Immigrants and their Children in Britain,"
CReAM Discussion Paper Series
0610, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Christian Dustmann & Nikolaos Theodoropoulos, 2010. "Ethnic minority immigrants and their children in Britain," Oxford Economic Papers, Oxford University Press, vol. 62(2), pages 209-233, April.
- Christian Dustmann & Nikolaos Theodoropoulos, 2008. "Ethnic minority immigrants and their children in Britain," University of Cyprus Working Papers in Economics 7-2008, University of Cyprus Department of Economics.
- Kevin Lang, 2007.
"Introduction to Poverty and Discrimination
[Poverty and Discrimination]," Introductory Chapters, Princeton University Press.
- Christian Dustmann & Tommaso Frattini & Nikolaos Theodoropoulos, 2010. "Ethnicity and Second Generation Immigrants in Britain," CReAM Discussion Paper Series 1004, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Tony Fang & John S. Heywood, 2010. "Immigration, Ethnic Wage Differentials and Output Pay in Canada," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 109-130, 03.
- Colin Green & John Heywood, 2012. "Don't Forget the Gravy! Are Bonuses and Time Rates Complements?," Working Papers 13424023, Lancaster University Management School, Economics Department.
When requesting a correction, please mention this item's handle: RePEc:ucy:cypeua:06-2012. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.