@TechReport{iza:izadps:dp14986,
            	author={Frederiksen, Anders and Hansen, Daniel Baltzer Schjødt and Manchester, Colleen Flaherty},
            	title={Does Group-Based Incentive Pay Lead To Higher Productivity? Evidence from a Complex and Interdependent Industrial Production Process},
            	year={2022},
	month={Jan},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={14986},
            	url={https://www.iza.org/publications/dp14986},
	abstract={Group-based incentive pay is attractive in contexts where production is complex and interdependent, yet freeriding is a paramount concern. We assess the introduction of group-based performance pay in a modern industrial production setting using difference-in-difference estimation. Performance increased by 19 percent, with three quarters coming from increased performance of existing workers and the remaining from selection; workers became more efficient and were absent less often. We find little evidence of freeriding; quantile regressions show increased performance throughout the distribution of workers. Features of the design and implementation process created trust, a common goal, and a shared identity, which limited freeriding.},
	keywords={absenteeism;selection effects;incentive effects;freeriding;group-based incentive;performance pay;difference-in-differences;efficiency;performance;productivity;trust},
            }