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DP5455 | Performance Related Pay and Labour Productivity
Author(s)
Jan C. van Ours
Anne Gielen
Marcel J M Kerkhofs
Publication Date
13/01/2006
JEL Code(s)
C41, H55, J64, J65
Keyword(s)
Performance Related Pay, labour productivity
Programme Area(s)
Labour Economics
Network(s)
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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%.