Compensation and Incentives in the Workplace

Edward P. Lazear

Journal of Economic Perspectives, 2018, vol. 32, issue 3, 195-214

Abstract: Labor is supplied because most of us must work to live. Indeed, it is called "work" in part because without compensation, the overwhelming majority of workers would not otherwise perform the tasks. The theme of this essay is that incentives affect behavior and that economics as a science has made good progress in specifying how compensation and its form influences worker effort. This is a broad topic, and the purpose here is not a comprehensive literature review on each of many topics. Instead, a sample of some of the most applicable papers are discussed with the goal of demonstrating that compensation, incentives, and productivity are inseparably linked.

JEL-codes: D12 D82 D91 J22 J31 J33 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/jep.32.3.195
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Citations: View citations in EconPapers (79)

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