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Salaire à la performance : incitation ou sélection ?

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  • Edward P. Lazear

Abstract

The growth in variable pay is usually associated with the desire to provide incentives. However, the sorting explanation has beenunder-emphasized. Frequently, data are consistent with the sorting explanation as well as the incentive story, but the implications, both at positive and normative levels, are quite different. The evidence from the real world is consistent with the use of variable pay as a selection or sorting device, particularly at the managerial level. The importance of the sorting explanation is greatest in new industries.

Suggested Citation

  • Edward P. Lazear, 2004. "Salaire à la performance : incitation ou sélection ?," Economie & Prévision, La Documentation Française, vol. 0(3), pages 17-25.
    • Handle: RePEc:cai:ecoldc:ecop_164_0017
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    References listed on IDEAS

    as
    1. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
    2. Jensen, Michael C & Murphy, Kevin J, 1990. "Performance Pay and Top-Management Incentives," Journal of Political Economy, University of Chicago Press, vol. 98(2), pages 225-264, April.
    3. Brian J. Hall & Jeffrey B. Liebman, 1998. "Are CEOs Really Paid Like Bureaucrats?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 653-691.
    4. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    5. Edward P. Lazear, 1999. "Output-based Pay: Incentives or Sorting?," NBER Working Papers 7419, National Bureau of Economic Research, Inc.
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    Keywords

    incentives; sorting; selection;
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