Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender
Abstract
This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. Subjects face the choice between a fixed and a variable payment scheme. Depending on the treatment, the variable payment is a piece rate, a tournament, or a revenue-sharing scheme. We find that output is higher in the variable-payment schemes compared to the fixed-payment scheme. This difference is largely driven by productivity sorting....
Paper Details
Title
Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender
Published Date
Apr 1, 2011
Journal
Volume
101
Issue
2
Pages
556 - 590
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Notes
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