Performance Related Pay and Labor Productivity
CentER Discussion Paper No. 2006-01
17 Pages Posted: 15 Feb 2006
Date Written: July 2006
Abstract
This paper uses information from a panel of Dutch firms to investigate the labor productivity effects of performance related pay (PRP). We find that PRP increases labor productivity at the firm level with about 9% and employment with about 5%.
Keywords: performance related pay, labor productivity
JEL Classification: C41, H55, J64, J65
Suggested Citation: Suggested Citation
Gielen, Anne C. and Kerkhofs, Marcel and van Ours, Jan C., Performance Related Pay and Labor Productivity (July 2006). IZA Discussion Paper No. 2211, CentER Discussion Paper No. 2006-01, Available at SSRN: https://ssrn.com/abstract=882049 or http://dx.doi.org/10.2139/ssrn.882049
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