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DP5455 | Performance Related Pay and Labour Productivity

Publication Date

13/01/2006

JEL Code(s)

  • C41, H55, J64, J65

Keyword(s)

  • Performance Related Pay, labour productivity

Programme Area(s)

  • Labour Economics

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%.