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Performance Pay and Productivity: A Note on the Moderating Role of a High‐wage Policy
Author(s) -
Jirjahn Uwe
Publication year - 2016
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.2786
Subject(s) - wage , productivity , profit sharing , economics , german , panel data , labour economics , efficiency wage , profit (economics) , performance related pay , microeconomics , incentive , econometrics , macroeconomics , finance , history , archaeology
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. Copyright © 2016 John Wiley & Sons, Ltd.