Performance Pay and Wage Inequality

There is a very interesting paper in the February 2009 issue of the Quarterly Journal of Economics on “Performance Pay and Wage Inequality”. It’s fascinating to think that 21% of the rise in wage inequality since 1980 might be attributable to increased use of performance pay schemes.

One response to “Performance Pay and Wage Inequality”

  1. adamsmithalevel

    Hi John,
    i agree with you that it was indeed AMAZING that the increased use of performance pay schemes has led to the rise of wage inequality. As a matter of fact, i feel that it is perturbing that things can turn out this way in our economy.

    anyway, i will be talking about this issue during my economics tuition lessons in Singapore. Cheers!