University of Cambridge > Talks.cam > Economics & Policy Seminars, CJBS > PAYING FOR WHAT KIND OF PERFORMANCE? PERFORMANCE PAY, MULTITASKING, AND SORTING IN MISSION ORIENTED JOBS

PAYING FOR WHAT KIND OF PERFORMANCE? PERFORMANCE PAY, MULTITASKING, AND SORTING IN MISSION ORIENTED JOBS

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Ahead of the seminar a light lunch will be available in the main reception at 12:30

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 incentivised dimension of effort and negative effects on the non incentivised 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.

This talk is part of the Economics & Policy Seminars, CJBS series.

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