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PRP and wage inequality

PRP and wage inequality. Trend in PRP broadly stable. PP incidence over time – broad measure of PP. PP incidence over time – “bonuses”. PP incidence over time – “PRP”. PRP and wage inequality. Aligns with other work that indicates broad stability in the incidence of PRP in 2000s

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PRP and wage inequality

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  1. PRP and wage inequality • Trend in PRP broadly stable

  2. PP incidence over time – broad measure of PP

  3. PP incidence over time – “bonuses”

  4. PP incidence over time – “PRP”

  5. PRP and wage inequality • Aligns with other work that indicates broad stability in the incidence of PRP in 2000s • How to treat irregular bonuses?

  6. PRP and wage inequality • Aligns with other work that indicates broad stability in the incidence of PRP in 2000s • How to treat irregular bonuses? • The devil is in the detail

  7. Wage dispersion over time - men

  8. PRP and wage inequality • Aligns with other work that indicates broad stability in the incidence of PRP in 2000s • How to treat irregular bonuses? • The devil is in the detail • The importance of selection

  9. PP and wages • Before looking at wage distribution, check whether there is a PP premium at the mean and how much can be explained by selection of workers into jobs. • Wages of PP workers are on average 11-24% higher than for FP workers. After controlling for personal and job characteristics, premium is 10-11%, and after controlling for unobserved individual traits it is 2-4%. • So on average PP raises wages but there is positive sorting into PP jobs.

  10. PRP and wage inequality • Aligns with other work that indicates broad stability in the incidence of PRP in 2000s • How to treat irregular bonuses? • The devil is in the detail • The importance of selection • Mechanisms – changes in returns?

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