This paper focuses on the effects of a shift in the firm pay strategy from a fixed wage to a flexible pay scheme on the performance of the "treated" firms. Theory predicts that the introduction of performance-related pay (PRP) may produce both incentive and sorting effects, making the incumbent...

In this paper we study the effect of a micro-level measure of flexicurity on workers' job satisfaction. To this end, using micro-data from the Eurobarometer survey, we disaggregate the sample of workers into different groups according not only to their employment contract (i.e. permanent or...