Design and Implementation of Pay for Performance
University of Chicago Booth School of Business; Institute for the Study of Labor (IZA)
January 29, 2012
Chicago Booth Research Paper No. 12-05
A large, mature and robust literature now provides a useful framework for designing and implementing pay for performance. Several excellent surveys of this research are available. The purpose of this chapter is not to provide yet another survey, but to use the lessons of the economic literature on incentives to discuss how to design and implement pay for performance in practice.
Number of Pages in PDF File: 36
Keywords: Incentives, Pay for Performance, Performance Measurement, Subjective Evaluation
JEL Classification: M52, J33, M12, L81
Date posted: January 30, 2012 ; Last revised: February 7, 2012
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