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Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender. : American Economic Review , April , 2011

April 2011

American Economic Review

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From the abstract: “This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. Subjects face the choice between a fixed and a variable payment scheme. Depending on the treatment, the variable payment is a piece rate, a tournament, or a revenue-sharing scheme. We find that output is higher in the variable-payment schemes compared to the fixed-payment scheme. This difference is largely driven by productivity sorting. In addition, different incentive schemes systematically attract individuals with different attitudes, such as willingness to take risks and relative self-assessment as well as gender, which underlines the importance of multidimensional sorting.”

Authors - Dohmen, Thomas, Falk, Armin



Dohmen, Thomas, Falk, Armin


American Economic Review


101(2), 2011: 556-90


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