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Do Salaries Improve Worker Performance?

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  • Alex Bryson

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  • Buraimo, B.

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  • Simmons, R.

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Abstract

We establish the effects of salaries on worker performance by exploiting a natural experiment in which some workers in a particular occupation (football referees) switch from short-term contracts to salaried contracts. Worker performance improves among those who move onto salaried contracts relative to those who do not.

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Bibliographic Info

Paper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 366.

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Date of creation: Oct 2010
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Handle: RePEc:nsr:niesrd:366

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  1. David Forrest & Ian McHale & Kevin McAuley, 2008. "“Say It Ain’t So”: Betting-Related Malpractice in Sport," International Journal of Sport Finance, Fitness Information Technology, vol. 3(3), pages 156-166, August.
  2. Dobson,Stephen & Goddard,John, 2011. "The Economics of Football," Cambridge Books, Cambridge University Press, number 9780521517140.
  3. Rickman, Neil & Witt, Robert, 2005. "Favouritism and Financial Incentives: A Natural Experiment," CEPR Discussion Papers 4968, C.E.P.R. Discussion Papers.
  4. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2005. "Social Preferences and the Response to Incentives: Evidence from Personnel Data," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 917-962, August.
  5. Arijit Mukherjee & Luis Vasconcelos, 2011. "Optimal job design in the presence of implicit contracts," RAND Journal of Economics, RAND Corporation, vol. 42(1), pages 44-69, 03.
  6. Thomas Lemieux & W. Bentley MacLeod & Daniel Parent, 2009. "Performance Pay and Wage Inequality-super-," The Quarterly Journal of Economics, MIT Press, vol. 124(1), pages 1-49, February.
  7. Luis Garicano & Ignacio Palacios-Huerta & Canice Prendergast, 2005. "Favoritism Under Social Pressure," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 208-216, May.
  8. Sue Fernie & David Metcalf, 1999. "It's Not What You Pay it's the Way that You Pay it and that's What Gets Results: Jockeys' Pay and Performance," LABOUR, CEIS, vol. 13(2), pages 385-411, 06.
  9. Orana Bandiera & Iwan Barankay & Imran Rasul, 2006. "Incentives for managers and inequality among workers: Evidence from a firm level experiment," Natural Field Experiments 00213, The Field Experiments Website.
  10. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  11. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
  12. repec:feb:natura:0014 is not listed on IDEAS
  13. Lazear, Edward P, 1986. "Salaries and Piece Rates," The Journal of Business, University of Chicago Press, vol. 59(3), pages 405-31, July.
  14. Babatunde Buraimo & David Forrest & Robert Simmons, 2010. "The 12th man?: refereeing bias in English and German soccer," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(2), pages 431-449.
  15. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
  16. Arijit Mukherjee, 2010. "The optimal disclosure policy when firms offer implicit contracts," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 549-573.
  17. Thomas J. Dohmen, 2008. "The Influence Of Social Forces: Evidence From The Behavior Of Football Referees," Economic Inquiry, Western Economic Association International, vol. 46(3), pages 411-424, 07.
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