Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender

S-Tier
Journal: American Economic Review
Year: 2011
Volume: 101
Issue: 2
Pages: 556-90

Authors (2)

Thomas Dohmen (not in RePEc) Armin Falk (briq Institute on Behavior)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

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. (JEL C91, D81, D82, J16, J31)

Technical Details

RePEc Handle
repec:aea:aecrev:v:101:y:2011:i:2:p:556-90
Journal Field
General
Author Count
2
Added to Database
2026-01-25