Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273423 
Year of Publication: 
2023
Series/Report no.: 
GLO Discussion Paper No. 1305
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
This paper uses German survey data on married couples to examine the association of performance pay at work and subsequent separation or divorce. Despite extensive controls, performance pay remains associated with an increased probability of 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 attempts to account for endogeneity. We argue that the pattern fits theoretical expectations and discuss the implications.
Subjects: 
Performance Pay
Separation
Divorce
Gender
JEL: 
J33
I31
J32
Document Type: 
Working Paper

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