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Author: Yedid-Levi, Yaniv
Resulting in 2 citations.
1. Galindo da Fonseca, Joao Alfredo
Gallipoli, Giovanni
Yedid-Levi, Yaniv
Match Quality and Contractual Sorting
Labour Economics 66 (October 2020): 101899.
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Job Characteristics; Performance pay; Wage Determination

This paper examines the impact of match-specific heterogeneity on compensation arrangements. In a stylized contractual choice problem we show that employers may have an incentive to offer performance-based contracts when match-specific productivity is high. We test the empirical content of this hypothesis using the NLSY79, which contains information about individual job histories and performance pay. We find that better match quality does affect pay arrangements, employment durations and wage cyclicality. Direct evidence on the accrual of job offers to workers lends support to the hypothesis that employers use performance-related compensation to preserve high-quality matches.
Bibliography Citation
Galindo da Fonseca, Joao Alfredo, Giovanni Gallipoli and Yaniv Yedid-Levi. "Match Quality and Contractual Sorting." Labour Economics 66 (October 2020): 101899.
2. Gallipoli, Giovanni
Yedid-Levi, Yaniv
Revisiting the Relationship Between Unemployment and Wages
Presented: Chicago IL, American Economic Association Annual Meeting, January 2017
Cohort(s): NLSY79
Publisher: American Economic Association
Keyword(s): Occupations; Performance pay; Unemployment Rate; Wages

Permission to reprint the abstract has not been received from the publisher.

We investigate the empirical relationship between wages and labor market conditions. Following work histories in the NLSY79 we document that the relationship between wages and unemployment rate differs across occupations. The results hold after controlling for unobserved match quality. This suggests that evidence about history dependence of wages obtained from pooled samples conceals significant differences and provides an imprecise description of earning dynamics. We examine these discrepancies and offer new evidence suggesting that the sensitivity of wages to current unemployment is linked to the prevalence of performance pay.
Bibliography Citation
Gallipoli, Giovanni and Yaniv Yedid-Levi. "Revisiting the Relationship Between Unemployment and Wages." Presented: Chicago IL, American Economic Association Annual Meeting, January 2017.