On the merit of equal pay: Performance manipulation and incentive setting

B-Tier
Journal: European Economic Review
Year: 2019
Volume: 113
Issue: C
Pages: 23-45

Authors (4)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

Work performance is often difficult to assess thus leaving room for manipulation of commonly-used metrics. We created a laboratory workplace in which we can precisely assess both work performance along with manipulation activities. Using two independent experiments we show that, whenever pay for performance is used, manipulation is pervasive leading to both a waste of organizational resources and a weakening of incentives. By contrast, paying organizational members equally effectively deters manipulation attempts leading to higher organizational production.

Technical Details

RePEc Handle
repec:eee:eecrev:v:113:y:2019:i:c:p:23-45
Journal Field
General
Author Count
4
Added to Database
2026-01-25