Barth, Erling; Bratsberg, Bernt; Haegeland, Torbjørn; … - Institute for the Study of Labor (IZA) - 2009
This paper examines the impact of performance-related pay on wage differentials within firms. Our theoretical framework predicts that, compared to a fixed pay system, pay schemes based on individual output increase within-firm wage inequality, while group-based bonuses have minor effects on wage...