Performance Related Pay and Labor Productivity

IZA Discussion Paper No. 2211

CentER Discussion Paper No. 2006-01

17 Pages Posted: 15 Feb 2006

See all articles by Anne C. Gielen

Anne C. Gielen

Institute for the Study of Labor (IZA); Maastricht University

Marcel Kerkhofs

Tilburg University - OSA Institute for Labour Studies

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Date Written: July 2006

Abstract

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

Suggested Citation

Gielen, Anne C. and Kerkhofs, Marcel and van Ours, Jan C., Performance Related Pay and Labor Productivity (July 2006). IZA Discussion Paper No. 2211; CentER Discussion Paper No. 2006-01. Available at SSRN: https://ssrn.com/abstract=882049

Anne C. Gielen (Contact Author)

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

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

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands
+31 43 3883887 (Phone)
+31 43 3881450 (Fax)

HOME PAGE: http://www.annegielen.nl

Marcel Kerkhofs

Tilburg University - OSA Institute for Labour Studies ( email )

Postbus 90153
Tilburg, DC 5000 LE
Netherlands

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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