Paying for what kind of Performance? Performance Pay and Multitasking in Mission-Oriented Jobs

42 Pages Posted: 25 Sep 2018

See all articles by Daniel Jones

Daniel Jones

University of Pittsburgh - Graduate School of Public & International Affairs

Mirco Tonin

Free University of Bozen-Bolzano; IZA; CESifo (Center for Economic Studies and Ifo Institute)

Michael Vlassopoulos

University of Southampton; IZA -- Institute for the Study of Labor

Multiple version iconThere are 2 versions of this paper

Date Written: July 18, 2018

Abstract

How does pay-for-performance (P4P) impact productivity, multitasking, and the composition of workers in mission-oriented jobs? These are central issues in sectors like education or healthcare. We conduct a laboratory experiment, manipulating compensation and mission, to answer these questions. We find that P4P has positive effects on productivity on the incentivized dimension of effort and negative effects on the non-incentivized dimension for workers in non-mission-oriented treatments. In mission-oriented treatments, P4P generates minimal change on either dimension. Participants in the non-mission sector – but not in the mission-oriented treatments – sort on ability, with lower ability workers opting out of the P4P scheme.

Keywords: prosocial motivation, performance pay, multitasking, sorting

JEL Classification: C910, M520, J450

Suggested Citation

Jones, Daniel and Tonin, Mirco and Vlassopoulos, Michael, Paying for what kind of Performance? Performance Pay and Multitasking in Mission-Oriented Jobs (July 18, 2018). CESifo Working Paper Series No. 7156. Available at SSRN: https://ssrn.com/abstract=3250747

Daniel Jones

University of Pittsburgh - Graduate School of Public & International Affairs ( email )

Pittsburgh, PA 15260-0001
United States

HOME PAGE: http://danielbjones.weebly.com

Mirco Tonin (Contact Author)

Free University of Bozen-Bolzano ( email )

Sernesiplatz 1
Bozen-Bolzano, BZ 39100
Italy

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/en/webcontent/personnel/photos/index_html?key=3339

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Michael Vlassopoulos

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

IZA -- Institute for the Study of Labor ( email )

Bonn

Register to save articles to
your library

Register

Paper statistics

Downloads
11
Abstract Views
70
PlumX Metrics