Performance Pay and Prior Learning-Evidence from a Retail Chain

• 成果类型: Article
• 署名作者: Manthei, Kathrin; Sliwka, Dirk; Vogelsang, Timo
• 署名单位: University of Cologne; Frankfurt School Finance & Management
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2020.3825
• 发表日期: 2021
• 页码: 6998-7022
• 关键词: performance pay; incentives; learning; experience; insider econometrics; field experiment; randomized control trial (RCT)

摘要

We report the results of two field experiments in a retail chain and show that the effectiveness of performance pay crucially hinges on prior job experience. Introducing sales-based performance pay first for district managers and later for store managers, we find negligible average treatment effects. From 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.