Design and Implementation of Pay for Performance
A large, mature and robust economic literature on pay for performance now exists, which provides a useful framework for thinking about pay for performance systems. I use the lessons of the literature to discuss how to design and implement pay for performance in practice.
|Date of creation:||Jan 2012|
|Date of revision:|
|Publication status:||published in: C. R. Thomas and W. F. Shughart II (eds.), Oxford Handbook in Managerial Economics, Oxford University Press, 2013, 397-423|
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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.:
- George Baker & Robert Gibbons & Kevin J. Murphy, 1994. "Subjective Performance Measures in Optimal Incentive Contracts," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 1125-1156.
- Jed Devaro & Fidan Ana Kurtulus, 2011.
"An Empirical Analysis of Risk, Incentives and The Delegation of Worker Authority,"
UMASS Amherst Economics Working Papers
2011-13, University of Massachusetts Amherst, Department of Economics.
- Jed Devaro & Fidan Ana Kurtulus, 2010. "An Empirical Analysis of Risk, Incentives and the Delegation of Worker Authority," ILR Review, Cornell University, ILR School, vol. 63(4), pages 641-661, July.
- Courty, Pascal & Marschke, Gerald, 2002.
"An Empirical Investigation of Gaming Responses to Explicit Performance Incentives,"
CEPR Discussion Papers
3164, C.E.P.R. Discussion Papers.
- Pascal Courty & Gerald Marschke, 2004. "An Empirical Investigation of Gaming Responses to Explicit Performance Incentives," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 23-56, January.
- Gerald Marschke & Pascal Courty, 2002. "An Empirical Investigation of Gaming Responses to Explicit Performance Incentives," Discussion Papers 02-06, University at Albany, SUNY, Department of Economics.
- Srikant Datar & Susan Cohen Kulp & Richard A. Lambert, 2001. "Balancing Performance Measures," Journal of Accounting Research, Wiley Blackwell, vol. 39(1), pages 75-92, 06.
- Bengt Holmstrom, 1979.
"Moral Hazard and Observability,"
Bell Journal of Economics,
The RAND Corporation, vol. 10(1), pages 74-91, Spring.
- Stephen Eliot Hansen, 2010. "The benefits of limited feedback in organizations," Economics Working Papers 1232, Department of Economics and Business, Universitat Pompeu Fabra.
- Randolph Sloof & Mirjam van Praag, 2014.
"Testing for Distortions in Performance Measures: An Application to Residual Income Based Measures like Economic Value Added,"
Tinbergen Institute Discussion Papers
14-056/V, Tinbergen Institute.
- Randolph Sloof & Mirjam Praag, 2015. "Testing for Distortions in Performance Measures: An Application to Residual Income-Based Measures like Economic Value Added," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(1), pages 74-91, 03.
- John F. Heliwell & Haifang Huang, 2005.
"How's the Job? Well-Being and Social Capital in the Workplace,"
NBER Working Papers
11759, National Bureau of Economic Research, Inc.
- John F. Helliwell & Haifang Huang, 2010. "How's the Job? Well-Being and Social Capital in the Workplace," ILR Review, Cornell University, ILR School, vol. 63(2), pages 205-227, January.
- Pascal Courty & Gerald Marschke, 2008. "A General Test for Distortions in Performance Measures," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 428-441, August.
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