11 To use bonuses as the performance-based component of wages, it is necessary to ensure that bonuses are actually paid based on workers' current performance.
Using the minimum wage's close linkage with a less-educated worker's expected income, I find that in addition to being an important component of wages, a minimum wage increase can induce migration.
Here, we find a negative relationship with no steepening for blue collars and a large steepening for white collars, confirming indirectly that the increased shape of the PC can be influenced by adjustments in the variable component of wages.
Also, in order to absorb a possible correlation with the unobservable component of wages, we include interactions of years of schooling with regions and age groups, interactions of age with each region, and interactions of rural communities with each level of education.
We start by writing a wage equation as: begin{aligned} ln {w_{a,t}}=X_{a,t}beta _{t}+u_{a,t}, end{aligned} (17 where (ln {w_{a,t}}) is the log hourly wage for agent a in year t, (X_{a,t}) is a vector of individual characteristics (education and experience,9) and (u_{a,t}) is the component of wages accounted for by the unobservables.
At all points along the distribution, non-English-speaking immigrants are endowed with greater characteristics and this characteristic component of the wage gap increases with skill (wage).
INPS wage data lack separate information on the various components of wages in order to understand where the flexibility comes from.
The INPS data do not contain separate information on the different components of wages and in particular on una tantum payments.
