TY  - RPRT
        AU  - Manthei, Kathrin
AU  - Sliwka, Dirk
AU  - Vogelsang, Timo
        TI  - Performance Pay and Prior Learning: Evidence from a Retail Chain
        PY  - 2018/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11859
        UR  - https://www.iza.org/publications/dp11859
        AB  - We run two field experiments within a large retail chain showing that the effectiveness of performance pay crucially hinges on prior job experience. Introducing sales-based performance pay for district- and later for store-managers, we find negligible average treatment effects. Based on surveys and interviews, we develop a formal model demonstrating that the effect of performance pay decreases with experience and may even vanish in the limit. We provide empirical evidence in line with this hypothesis, for instance, finding positive treatment effects (only) in stores with low job experience. 
        KW  - performance pay
KW  - incentives
KW  - learning
KW  - experience
KW  - insider econometrics
KW  - field experiment
KW  - randomized control trial (RCT)
        ER  -