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How performance related pay affects productivity and employment

Journal of Population Economics (2009) 23(1) 291-301
DOI: 10.1007/s00148-009-0252-9
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Abstract

This paper uses information from a panel of Dutch firms to investigate the labor productivity effects of performance related pay (PRP). We find that PRP increases productivity at the firm level with 9% and employment growth with 5%. © The Author(s) 2009.

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Gielen, A. C., Kerkhofs, M. J. M., & van Ours, J. C. (2009). How performance related pay affects productivity and employment. Journal of Population Economics, 23(1), 291–301. https://doi.org/10.1007/s00148-009-0252-9

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