Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58566
Authors: 
Lucifora, Claudio
Origo, Federica
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6483
Abstract: 
This paper investigates the causal effect of a switch from fixed wages to collective performance-related pay on firm productivity, exploiting an exogenous variation in the institutional environment regulating collective bargaining. We find that the introduction of collective performance related pay significantly increases productivity by around 3-5 per cent, but such effect varies greatly by firm size, industry and union density. We show that the design of the PRP scheme - in terms of number and type of parameters used - is also relevant for firm productivity.
Subjects: 
performance related pay
productivity
unions
JEL: 
J31
J33
J52
L61
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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