TY  - RPRT
        AU  - Frederiksen, Anders
AU  - Hansen, Daniel Baltzer Schjødt
AU  - Manchester, Colleen Flaherty
        TI  - Does Group-Based Incentive Pay Lead To Higher Productivity? Evidence from a Complex and Interdependent Industrial Production Process
        PY  - 2022/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14986
        UR  - https://www.iza.org/publications/dp14986
        AB  - 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.
        KW  - absenteeism
KW  - selection effects
KW  - incentive effects
KW  - freeriding
KW  - group-based incentive
KW  - performance pay
KW  - difference-in-differences
KW  - efficiency
KW  - performance
KW  - productivity
KW  - trust
        ER  -