Henneberger, Fred; Sousa-Poza, Alfonso; Ziegler, Alexandre - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
Implementing performance pay requires that workers' output be measured. Whenmeasurement costs differ among firms, those with a measurement cost advantage choose toimplement performance pay. They attract the best workers, and both the level and variabilityof compensation are higher at these firms...