DP5455 Performance Related Pay and Labour Productivity

Author(s):	Anne Gielen, Marcel J M Kerkhofs, Jan C. van Ours
Publication Date:	January 2006
Keyword(s):	labour productivity, performance related pay
JEL(s):	C41, H55, J64, J65
Programme Areas:	Labour Economics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=5455

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%.