Higher and higher? Performance pay and wage inequality in Germany

"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 the growing use of performance pay schemes is related to the increase in wage inequality? Ger...

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Bibliographic Details
Main Author: Sommerfeld, Katrin
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Berlin 2012
DIW
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19132025124919502079-Higher-and-higher?-Performance.htm
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author Sommerfeld, Katrin
author_facet Sommerfeld, Katrin
collection Library items
description "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 the growing use of performance pay schemes is related to the increase in wage inequality? German SOEP data for the years 1984 to 2009 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 receive it. Still, the wage difference between both wage schemes remained flat over the distribution. The empirical analysis employs sequential decompositions in a quantile regression framework."
format TEXT
geographic Germany
id 19132025124919502079_83962fd098964333a6c3352442add2d9
institution ETUI-European Trade Union Institute
is_hierarchy_id 19132025124919502079_83962fd098964333a6c3352442add2d9
is_hierarchy_title Higher and higher? Performance pay and wage inequality in Germany
language English
physical 43 p.
Digital
publishDate 2012
publisher Berlin
DIW
spellingShingle Sommerfeld, Katrin
performance related pay
wage differential
wages
Higher and higher? Performance pay and wage inequality in Germany
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=111472493965
title Higher and higher? Performance pay and wage inequality in Germany
topic performance related pay
wage differential
wages
url https://www.labourline.org/KENTIKA-19132025124919502079-Higher-and-higher?-Performance.htm