Paying for what kind of performance? Performance pay and multitasking in mission-oriented jobs
Working paper n°: 123
Unit: Welfare State and Taxation
Author(s): Daniel Jones, Mirco Tonin, Michael Vlassopoulos.
How does pay-for-performance (P4P) impact productivity, multitasking, and the composition of workers in mission-oriented jobs? These are central issues in sectors like education or healthcare. We conduct a laboratory experiment, manipulating compensation and mission, to answer these questions. We find that P4P has positive effects on productivity on the incentivized dimension of effort and negative effects on the non-incentivized dimension for workers in non-mission-oriented treatments. In mission-oriented treatments, P4P generates minimal change on either dimension. Participants in the non-mission sector – but not in the mission-oriented treatments – sort on ability, with lower ability workers opting out of the P4P scheme.
Daniel Jones University of Pittsburgh
Mirco Tonin Free University of Bozen-Bolzano, IZA, CESifo, Carlo F. Dondena Centre for Research on Social Dynamics and Public Policies, Università Bocconi
Michael Vlassopoulos University of Southampton, IZA
The paper may be downloaded here.
Last updated 17 July 2018 - 09:39:22