New Publication

21/06/2021

Isabella Grabner from IfU and Melissa Martin (University of Illinois) have investigated the effects of pay dispersion, i.e. the variation between salaries

How should companies design individual pay incentives? Do employees automatically work harder if they receive more pay? The result: Individual differences in pay levels are only accepted as fair if they clearly correspond to different levels of performance. Only in such cases will individual pay incentives have positive effects on performance.

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