Some evidence on the relationship between performance-related pay and the shape of the experience-earnings profile

Publication type

Journal Article

Authors

Publication date

June 1, 2006

Abstract:

We investigate the relationship between performance-related pay (PRP) and the shape of workers' experience-earnings profiles. In particular, we argue that the slope of the profile depends critically upon the degree of 'equity' held by workers in their enterprise as measured by the extent of PRP. The implication is that the slope of the profile for PRP workers falls between those of their zero-equity fixed-wage, and one hundred per cent equity self-employed, counterparts. Our empirical analysis of three British data sets, namely the British Social Attitudes Survey, the British Household Panel Survey, and the British Family Expenditure Survey, supports this prior.

Published in

Southern Economic Journal

Volume

Volume: 72 (3):660-676

Subject

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

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