We investigate the observable determinants of sorting between salary and performace pay jobs, the extent to which wage functions differ between the two, and the magnitude of the unobserved ability differential between salary and performance pay workers...

It is commonly alleged that foreign direct investment (FDI) in the service sector haspositive consequences for the domestic labor market. This paper shows that this widelyaccepted view does not generally hold...

Implementing performance pay requires that workers' output be measured. Whenmeasurement costs differ among firms, those with a measurement cost advantage choose toimplement performance pay. They attract the best workers, and both the level and variabilityof compensation are higher at these firms...