How performance related pay affects productivity and employment

A. C. Gielen, M.J.M. Kerkhofs, J.C. van Ours

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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 productivity at the firm level with 9% and employment growth with 5%.
Original languageEnglish
Pages (from-to)291-301
JournalJournal of Population Economics
Volume23
Issue number1
Publication statusPublished - 2010

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    Gielen, A. C., Kerkhofs, M. J. M., & van Ours, J. C. (2010). How performance related pay affects productivity and employment. Journal of Population Economics, 23(1), 291-301.