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Abstract

Using the Annual Survey of Hours and Earnings, we explore whether the fortunes of employees paid for performance differ from those of fixed pay workers during recession. Only in the bottom quintile of the wage distribution were performance pay employees more likely to experience greater falls in real wages than fixed pay employees. Accounting for fixed unobserved worker characteristics suggests that this was not due to the wage‐setting mechanism itself, but that other factors are likely to be at play. While across most of the earnings distribution there was little evidence of greater wage flexibility among performance pay employees, they did have longer job tenure than fixed pay employees over the recession.

Publication Type:	Article
Additional Information:	This is the pre-peer reviewed version of the following article: Stokes, L. , Bryson, A. , Forth, J. and Weale, M. (2017), Who Fared Better? The Fortunes of Performance Pay and Fixed Pay Workers through Recession. British Journal of Industrial Relations, 55: 778-801., which has been published in final form at https://doi.org/10.1111/bjir.12245. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Departments:	Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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