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Performance Pay and Productivity: A Note on the Moderating Role of a High‐wage Policy

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  • Uwe Jirjahn

Abstract

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.

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  • Uwe Jirjahn, 2016. "Performance Pay and Productivity: A Note on the Moderating Role of a High‐wage Policy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 37(7), pages 507-511, October.
    • Handle: RePEc:wly:mgtdec:v:37:y:2016:i:7:p:507-511
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    Cited by:

    1. Mehrzad B. Baktash & John S. Heywood & Uwe Jirjahn, 2022. "Performance pay and alcohol use in Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 353-383, October.
    2. Jirjahn, Uwe & Mohrenweiser, Jens, 2023. "Variable Payment Schemes and Productivity: Do Individual-Based Schemes Really Have a Stronger Influence than Collective Ones?," IZA Discussion Papers 16267, Institute of Labor Economics (IZA).
    3. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2023. "Does Performance Pay Increase the Risk of Marital Instability?," GLO Discussion Paper Series 1305, Global Labor Organization (GLO).
    4. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2022. "Worker stress and performance pay: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 276-291.
    5. Doucouliagos, Chris & Laroche, Patrice & Kruse, Douglas L. & Stanley, T. D., 2018. "Where Does Profit Sharing Work Best? A Meta-Analysis on the Role of Unions, Culture, and Values," IZA Discussion Papers 11617, Institute of Labor Economics (IZA).
    6. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2024. "Variable Pay and Work Hours: Does Performance Pay Reduce the Gender Time Gap?," GLO Discussion Paper Series 1450, Global Labor Organization (GLO).

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