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Performance pay and assortative matching
Author(s) -
Bender Keith A.,
Green Colin P.,
Heywood John S.
Publication year - 2021
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/sjpe.12232
Subject(s) - receipt , spouse , economics , matching (statistics) , dual (grammatical number) , demographic economics , labour economics , distribution (mathematics) , econometrics , statistics , mathematics , art , mathematical analysis , accounting , literature , sociology , anthropology
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.