Performance Pay and Productivity: The Moderating Role of a High-Wage Policy

Uwe Jirjahn

No 2015-04, Research Papers in Economics from University of Trier, Department of Economics

Abstract: Using panel data from German establishments, this study finds that performance pay is associated with increased productivity only when it is coupled with a high-wage policy. This holds for individual-based performance pay, group-based performance pay and profit sharing.

Keywords: Performance pay; high-wage policy; productivity; fixed effects regressions (search for similar items in EconPapers)
JEL-codes: D20 J33 M52 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2015
New Economics Papers: this item is included in nep-eff, nep-eur and nep-hrm
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Persistent link: https://EconPapers.repec.org/RePEc:trr:wpaper:201504

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