Skip to main content

Higher and higher? Performance pay and wage inequality in Germany

Buy Article:

$47.50 plus tax (Refund Policy)

Performance pay is of growing importance to the wage structure as it applies to a rising share of employees. At the same time, wage dispersion is growing continuously. This leads to the question of how is the growing use of performance pay schemes related to the increase in wage inequality? German Socio-Economic Panel (SOEP) data for the years 19842009 confirm the large increase in the application of performance pay schemes. This in turn led to an upward shift of the wage distribution by about one log point. However, it did not contribute to the growth in wage inequality. Even though wage inequality grew within the group of employees who receive performance pay, it grew even more so within the group who do not. Still, the wage difference between both wage schemes remained flat over the distribution. The empirical analysis employs sequential decompositions in a quantile regression framework.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Keywords: C21; J31; J33; performance pay; quantile regression; sequential decomposition; wage structure

Document Type: Research Article

Affiliations: Department of Applied Econometrics, University of Freiburg, D-79085, Freiburg, Germany

Publication date: 2013-10-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more