Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/181356
Authors: 
Jones, Daniel
Tonin, Mirco
Vlassopoulos, Michael
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7156
Abstract: 
How does pay-for-performance (P4P) impact productivity, multitasking, and the composition of workers in mission-oriented jobs? These are central issues in sectors like education or healthcare. We conduct a laboratory experiment, manipulating compensation and mission, to answer these questions. We find that P4P has positive effects on productivity on the incentivized dimension of effort and negative effects on the non-incentivized dimension for workers in non-mission-oriented treatments. In mission-oriented treatments, P4P generates minimal change on either dimension. Participants in the non-mission sector – but not in the mission-oriented treatments – sort on ability, with lower ability workers opting out of the P4P scheme.
Subjects: 
prosocial motivation
performance pay
multitasking
sorting
JEL: 
C91
M52
J45
Document Type: 
Working Paper

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