Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260682 
Year of Publication: 
2022
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Article No.:] 152v2 [Publisher:] Institute of Labor Economics (IZA) [Place:] Bonn [Year:] 2022
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
A growing number of firms offer compensation packages that link pay to performance. The aim is to motivate workers to be more efficient while also increasing their attachment to the company, thereby reducing turnover and absenteeism. The effects of performance-related pay on productivity depend on the scheme type and design, with individual incentives showing the largest effect. Governments often offer tax breaks and financial incentives to promote performance-related pay, though their desirability has been questioned due to large deadweight losses involved. The diffusion of remote work will increase the relevance of performance-related pay.
Subjects: 
performance-related pay
productivity
pay incentives
financial participation
JEL: 
J31
J33
J52
L61
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.