Incentive pay and performance: Insider econometrics in a multi-unit firm

B-Tier
Journal: Labour Economics
Year: 2018
Volume: 54
Issue: C
Pages: 100-115

Authors (2)

Bogaard, Hein (not in RePEc) Svejnar, Jan (Columbia University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Exploiting organizational reforms in a foreign-owned bank in Central-East Europe, we carry out an insider econometrics study of the implementation of modern human resource management reforms giving some employees high-powered incentives. We use branch-level panel data and particular features of the reform process to implement two estimators that address endogeneity bias (an outstanding issue in this literature) in a complementary fashion: an IV approach and Generalized Propensity Score estimation. In line with theory we show that some reforms had a positive impact on productivity. We also underscore the risks of introducing quantity-based incentives where quality is important.

Technical Details

RePEc Handle
repec:eee:labeco:v:54:y:2018:i:c:p:100-115
Journal Field
Labor
Author Count
2
Added to Database
2026-01-29