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How performance related pay affects productivity and employment |
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| Authors: | Anne C. Gielen Marcel J. M. Kerkhofs Jan C. van Ours |
| Affiliation: | (1) School of Business and Management, Queen Mary, University of London, Mile End Road, London, E1 4NS, UK;(2) IZA, Bonn, Germany;(3) CEG-IST, Lisbon, Portugal;(4) School of Economics and Finance, University of St Andrews, St Andrews, KY16 9AL, UK |
| 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 productivity at the firm level with 9% and employment growth with 5%. |
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