@techreport{NBERw13128,
 title = "Performance Pay and Wage Inequality",
 author = "Thomas Lemieux and W. Bentley MacLeod and Daniel Parent",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13128",
 year = "2007",
 month = "May",
 URL = "http://www.nber.org/papers/w13128",
 abstract = {We document that an increasing fraction of jobs in the U.S. labor market explicitly pay workers for their performance using bonuses, commissions, or piece-rates. We find that compensation in performance-pay jobs is more closely tied to both observed (by the econometrician) and unobserved productive characteristics of workers. Moreover, the growing incidence of performance-pay can explain 24 percent of the growth in the variance of male wages between the late 1970s and the early 1990s, and accounts for nearly all of the top-end growth in wage dispersion(above the 80th percentile).},
}