We present a sorting model in which workers with greater ability and greater risk tolerance move into performance pay jobs and contrast it with the classic agency model of performance pay. Estimates from the German Socio-Economic Panel confirm testable implications drawn from our sorting model....

We present a sorting model in which workers with greater ability and greater risk tolerance move into performance pay jobs and contrast it with the classic agency model of performance pay. Estimates from the German Socio-Economic Panel confirm testable implications drawn from our sorting model....

This chapter focuses on the lessons learned from four decades of studying the relationship between unions and job satisfaction. We discuss the original paradox that started the literature and trace the on-going debate over results that differ by sample and by estimation technique. We emphasize...