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...

We document new facts on the distribution of male fertility and its relationship with men's labor market outcomes. Using Norwegian registry data on all births since 1967, we show that rates of male childlessness in recent cohorts are 72% among the lowest five percent of earners but only 11%...

Research Question/Issue: Do large, within-firm executive pay differences hurt firm performance? Prior literature shows mixed results concerning the sign of the relationship between executive pay disparity and firm performance. This study evaluates that literature, clarifies what tournament...