Rewards to workers who suggest ways of improving quality and quantity in production are by no means new. It is argued that incentive schemes have other benefits besides increasing production and lowering costs, and a review of some of the rewards offered by firms over the years is presented.

Performance pay has been shown to have important implications for worker and firm productivity. Although workers' skills may directly matter for the cost of effort to reach performance goals, surprisingly little is know about the heterogeneity in the effects of incentive pay across workers. In...

Performance pay has been shown to have important implications for worker and firm productivity. Although workers' skills may directly matter for the cost of effort to reach performance goals, surprisingly little is know about the heterogeneity in the effects of incentive pay across workers. In...