November’s Special Issue of the NIESR Review is devoted to the topic of performance pay. Economists get pretty fixated about paying workers for their performance. There are good theoretical reasons why this kind of pay should increase worker effort and attract the best workers compared to paying a fixed time rate. And some of the best studies in labour economics are testimony to the power it can have to increase labour productivity – at least in particular settings. But there’s good reason to believe it’s not quite so important as most economists make out.
The goal of this Special Issue, therefore, is to bring together three papers that examine different aspects of performance pay. It offers papers that discuss particularly interesting or different ways of thinking about performance pay. As such, they add significantly to our overall knowledge of performance pay in labour markets.
This is a shortened version of the main blog post –
Keith A. Bender and Alex Bryson
Performance Pay: Trends and Consequences Introduction National Institute Economic Review November 2013 226: R1-R3, doi:10.1177/002795011322600101