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Performance Related Pay


  • Booth, A-L
  • Frank, J


Performance-related pay has been much advocated by governments as a means of promoting labour market flexibility and generating higher productivity. The UK government has been in th lead in providing incentives for profit-related pay, one particular form of performance-related pay (PRP). This paper adopts a different approach to measurement of the impact of PRP on productivity.

Suggested Citation

  • Booth, A-L & Frank, J, 1997. "Performance Related Pay," CEPR Discussion Papers 364, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  • Handle: RePEc:auu:dpaper:364

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    References listed on IDEAS

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    Cited by:

    1. Stephen Drinkwater & Peter Ingram, 2005. "Have Industrial Relations in the UK Really Improved?," LABOUR, CEIS, vol. 19(2), pages 373-398, June.
    2. Erling Barth & Bernt Bratsberg & Torbjørn Hægeland & Oddbjørn Raaum, 2008. "Performance Pay and Within-Firm Wage Inequality," Discussion Papers 535, Statistics Norway, Research Department.
    3. Fernie, Sue & Metcalf, David, 1998. "(Not)hanging on the telephone: payment systems in the new sweatshops," LSE Research Online Documents on Economics 20275, London School of Economics and Political Science, LSE Library.
    4. Sue Fernie & David Metcalf, 1998. "(Not)Hanging on the Telephone: Payment systems in the New Sweatshops," CEP Discussion Papers dp0390, Centre for Economic Performance, LSE.
    5. Hasnain, Zahid & Manning, Nick & Pierskalla Henryk, 2012. "Performance-related pay in the public sector : a review of theory and evidence," Policy Research Working Paper Series 6043, The World Bank.
    6. Cowling, Marc, 2007. "Performance Related Pay Coverage in the UK," MPRA Paper 1619, University Library of Munich, Germany.
    7. Chia-ying Liu & Juin-jen Chang, 2011. "Macroeconomic implications of a sharing compensation scheme in a model of endogenous growth," Journal of Economics, Springer, vol. 102(1), pages 57-75, January.
    8. Brice Corgnet, 2012. "Peer Evaluations And Team Performance: When Friends Do Worse Than Strangers," Economic Inquiry, Western Economic Association International, vol. 50(1), pages 171-181, January.
    9. NAKABAYASHI, Masaki, 2009. "Poaching, Courts, and Settlements:Complementarity of Governance in Labor Markets," ISS Discussion Paper Series (series F) f145, Institute of Social Science, The University of Tokyo, revised 01 Mar 2012.
    10. Lucifora, Claudio & Origo, Federica, 2012. "Performance Related Pay and Firm Productivity: New Evidence from a Quasi-Natural Experiment in Italy," IZA Discussion Papers 6483, Institute for the Study of Labor (IZA).

    More about this item



    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods


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