Performance-Related Pay: The Expected and the Unexpected

Bender, Keith A.; Skåtun, John D.

doi:10.1007/978-3-319-57365-6_316-1

Handbook of Labor, Human Resources and Population Economics 2022

DOI: 10.1007/978-3-319-57365-6_316-1

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Performance-Related Pay: The Expected and the Unexpected

Keith A. Bender

John D. Skåtun

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2024

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Cited by 1 publication

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Does performance pay increase the risk of marital instability?

Baktash,

Heywood,

Jirjahn

2024

Rev Econ Household

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This study is the first to systematically examine the association between performance pay and marital instability. Using German survey data on married couples and including an extensive set of controls, we show that performance pay is associated with an increased probability of subsequent separation or divorce. Yet, the results are entirely gender specific. When husbands earn performance pay, no association with marital instability is found. When wives earn performance pay, the association is large and robust. This pattern persists across a variety of modeling choices and holds in instrumental variable estimations accounting for the endogeneity of performance pay. We argue that the pattern fits theoretical expectations and discuss the implications.

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Does performance pay increase the risk of marital instability?

Baktash,

Heywood,

Jirjahn

2024

Rev Econ Household

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show abstract

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Performance-Related Pay: The Expected and the Unexpected

Cited by 1 publication

References 119 publications

Does performance pay increase the risk of marital instability?

Does performance pay increase the risk of marital instability?

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