Performance Pay and Productivity

Lazear (2000) · American Economic Review · Read the paper

[abstract only; full text not retrieved. The published abstract and the NBER working-paper abstract were both read, and the two figures must not be mixed] Lazear, E. P. (2000). 'Performance Pay and Productivity.' American Economic Review, 90(5), 1346-1361. doi:10.1257/aer.90.5.1346. Safelite Glass Corporation switched from hourly pay to piece rates between 1994 and 1995, and the published abstract gives productivity effects amounting to a 44 per cent increase in output per worker, with profits rising too. Both cautions are in the prose: the working paper gives the effect as about 20 to 36 per cent depending on what is held constant, and the theory the paper tests predicts the firm also attracted a more able workforce, so selection sits inside the number.

[abstract only; full text not retrieved. The published abstract and the NBER working-paper abstract were both read, and the two figures must not be mixed] Lazear, E. P. (2000). 'Performance Pay and Productivity.' American Economic Review, 90(5), 1346-1361. doi:10.1257/aer.90.5.1346. Safelite Glass Corporation switched from hourly pay to piece rates between 1994 and 1995, and the published abstract gives productivity effects amounting to a 44 per cent increase in output per worker, with profits rising too. Both cautions are in the prose: the working paper gives the effect as about 20 to 36 per cent depending on what is held constant, and the theory the paper tests predicts the firm also attracted a more able workforce, so selection sits inside the number.

Written from the abstract only; full text not retrieved. The published abstract and the NBER working-paper abstract were both read, and the two figures must not be mixed.

What our sources record

Recorded when this source was checked, figures included, with page references and quotation marks removed.

Lazear, E. P. (2000). 'Performance Pay and Productivity.' American Economic Review, 90(5), 1346-1361.