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| Author: | Lazear, E.P. |
| Title: | Performance pay and productivity |
| Journal: | American Economic Review
2000 : DEC, VOL. 90:5, p. 1346-1361 |
| Index terms: | PAY INCENTIVES PRODUCTIVITY |
| Language: | eng |
| Abstract: | Much of the theory in personnel economics relates to effects of monetary incentives on output, but the theory was untested because appropriate data were unavailable. A new data set for the Safelite Glass Corporation tests the predictions that average productivity will rise, the firm will attract a more able workforce, and variance in output across individuals at the firm will rise when it shifts to piece rates. In Safelife, productivity effects amount to a 44-percent increase in output per worker. |
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