Economists have often argued that "pay for performance" is the optimal compensation scheme. However, use of the simplest form of pay for performance, the piece rate, has been in decline in manufacturing in recent decades. We show both theoretically and empirically that these changes are due to...

Manufacturing matters to the United States because it provides high-wage jobs, commercial innovation (the nation’s largest source), a key to trade deficit reduction, and a disproportionately large contribution to environmental sustainability. The manufacturing industries and firms that make...

Analysis of data on employment, earnings, and the number of business establishments engaged in U.S. manufacturing finds that:In Metropolitan areas, especially large metropolitan areas and central metropolitan counties, contain the great majority of manufacturing jobs and nearly all very...

Improving manufacturing’s performance is a crucial part of the solution to America’s trade, innovation, and income distribution problems and is especially important to the well-being of metropolitan areas throughout the Great Lakes region. Manufacturing’s decline has contributed to the...

Economists have often argued that "pay for performance" is the optimal compensation scheme. However, use of the simplest form of pay for performance, the piece rate, has been in decline in manufacturing in recent decades. We show both theoretically and empirically that these changes are due to...