36 Pages Posted: 30 Jan 2012 Last revised: 7 Feb 2012
Date Written: January 29, 2012
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
By Kevin Murphy