Performance Related Pay and Labor Productivity
17 Pages Posted: 15 Feb 2006
Date Written: July 2006
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% and employment with about 5%.
Keywords: performance related pay, labor productivity
JEL Classification: C41, H55, J64, J65
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