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Title: Performance Pay and the White-Black Wage Gap
Resulting in 1 citation.
1. Heywood, John S.
Parent, Daniel
Performance Pay and the White-Black Wage Gap
Journal of Labor Economics 30,2 (April 2012): 249-290.
Also: http://www.jstor.org/stable/info/10.1086/663355
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Discrimination, Racial/Ethnic; Earnings; Panel Study of Income Dynamics (PSID); Performance pay; Racial Differences; Wage Determination; Wage Differentials

We show that the reported tendency for performance pay to be associated with greater wage inequality at the top of the earnings distribution applies only to white workers. This results in the white-black wage differential among those in performance pay jobs growing over the earnings distribution even as the same differential shrinks over the distribution for those not in performance pay jobs. We show that this remains true even when examining suitable counterfactuals that hold observables constant between whites and blacks. We explore reasons behind our finding focusing on the interactions between discrimination, unmeasured ability, and selection.
Bibliography Citation
Heywood, John S. and Daniel Parent. "Performance Pay and the White-Black Wage Gap." Journal of Labor Economics 30,2 (April 2012): 249-290.