Camargo, Braz; Lange, Fabian; Pastorino, Elena - National Bureau of Economic Research - 2022
Performance pay in general amounts to only a small fraction of total pay. In this paper, we show that performance pay … workers' ability, human capital acquisition, and performance incentives. We use this model to account for the experience … profile of wages, their dispersion, and their composition in terms of fixed and variable (performance) pay. The model admits …