Performance Related Pay and Labour Productivity

14 Pages Posted: 25 Apr 2006

See all articles by Jan C. van Ours

Jan C. van Ours

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

Marcel Kerkhofs

Tilburg University - OSA Institute for Labour Studies

Anne C. Gielen

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

Date Written: January 2006

Abstract

This paper uses information from a panel of Dutch firms to investigate the labour productivity effects of performance related pay (PRP). We find that PRP increases labour productivity at the firm level with about 9%.

Keywords: Performance related pay, labour productivity

JEL Classification: C41, H55, J64, J65

Suggested Citation

van Ours, Jan C. and Kerkhofs, Marcel and Gielen, Anne C. and Gielen, Anne C., Performance Related Pay and Labour Productivity (January 2006). CEPR Discussion Paper No. 5455, Available at SSRN: https://ssrn.com/abstract=898920

Jan C. Van Ours (Contact Author)

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

Marcel Kerkhofs

Tilburg University - OSA Institute for Labour Studies ( email )

Postbus 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Anne C. Gielen

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

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