Design and Implementation of Pay for Performance

Gibbs, Michael

doi:10.2139/ssrn.1995093

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Design and Implementation of Pay for Performance

Chicago Booth Research Paper No. 12-05

36 Pages Posted: 30 Jan 2012 Last revised: 7 Feb 2012

See all articles by Michael Gibbs

Michael Gibbs

University of Chicago Booth School of Business; Institute for the Study of Labor (IZA)

There are 2 versions of this paper

Date Written: January 29, 2012

Abstract

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.

Keywords: Incentives, Pay for Performance, Performance Measurement, Subjective Evaluation

JEL Classification: M52, J33, M12, L81

Suggested Citation: Suggested Citation

Gibbs, Michael, Design and Implementation of Pay for Performance (January 29, 2012). Chicago Booth Research Paper No. 12-05, Available at SSRN: https://ssrn.com/abstract=1995093 or http://dx.doi.org/10.2139/ssrn.1995093