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 Noord-Brabant 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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