Performance related pay and labor productivity

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Performance related pay and labor productivity

Author Info

Gielen, Anne C.
Kerkhofs, Marcel J.M.
Ours, Jan C. van (Tilburg University, Center for Economic Research)

Additional information is available for the following registered author(s):

Anne Christina Gielen

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%.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1.

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Date of creation: 2006
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Handle: RePEc:dgr:kubcen:20061

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Paper
- Gielen, Anne & Kerkhofs, Marcel J M & van Ours, Jan C, 2006. "Performance Related Pay and Labour Productivity," CEPR Discussion Papers 5455, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Anne C. Gielen & Marcel J.M. Kerkhofs & Jan C. van Ours, 2006. "Performance Related Pay and Labor Productivity," IZA Discussion Papers 2211, Institute for the Study of Labor (IZA). [Downloadable!]

Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-02-19 (All new papers)
NEP-BEC-2006-02-19 (Business Economics)
NEP-HRM-2006-02-19 (Human Capital & Human Resource Management)
NEP-PBE-2006-02-19 (Public Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Paarsch, H-J & Shearer, B, 1996. "Piece Rates, Fixed Wages, and Incentive Effects : Statistical Evidence From Payroll Records," Papers 9623, Laval - Recherche en Energie.
Other versions:
- Paarsch, Harry J. & Shearer, Bruce, 1996. "Piece Rates, Fixed Wages, and Incentive Effects: Statistical Evidence from Payroll Records," Cahiers de recherche 9623, Université Laval - Département d'économique. [Downloadable!]
- Harry J. Paarsch & Bruce S. Shearer, 1996. "Piece Rates, Fixed Wages, and Incentive Effects: Statistical Evidence from Payroll Records," CIRANO Working Papers 96s-31, CIRANO. [Downloadable!]
- Paarsch, Harry J & Shearer, Bruce, 2000. "Piece Rates, Fixed Wages, and Incentive Effects: Statistical Evidence from Payroll Records," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 59-92, February.
Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December. [Downloadable!] (restricted)
Other versions:
- Edward P. Lazear, 1996. "Performance Pay and Productivity," NBER Working Papers 5672, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March. [Downloadable!] (restricted)
Lazear, Edward P, 1986. "Salaries and Piece Rates," Journal of Business, University of Chicago Press, vol. 59(3), pages 405-31, July. [Downloadable!] (restricted)
Cahuc, Pierre & Dormont, Brigitte, 1997. "Profit-sharing: Does it increase productivity and employment? A theoretical model and empirical evidence on French micro data," Labour Economics, Elsevier, vol. 4(3), pages 293-319, September. [Downloadable!] (restricted)
Other versions:
- Cahuc, P. & Dormont, B., 1992. "Profit-Sharing: Does It Increase Productivity and Employment? A Theoretical Model and Empirical Evidence of French Micro Data," Papers 92.45, Paris I - Economie Mathematique et Applications.

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Gielen, A. C., 2007. "Performance Pay, Training and Labor Mobility," Discussion Paper 2007-48, Tilburg University, Center for Economic Research. [Downloadable!]
Other versions:
- Anne C. Gielen, 2007. "Performance Pay, Training and Labor Mobility," IZA Discussion Papers 2932, Institute for the Study of Labor (IZA). [Downloadable!]

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