Academic Commons

Reports

Incentive Pay and Performance: Insider Econometrics in a Multi-Unit Firm

Bogaard, Hein; Svejnar, Jan

We exploit organizational reforms in a foreign-owned bank in Central-East Europe to study the implementation of modern HRM policies in an emerging market context. We have branch-level data and use our knowledge of the process that led to the adoption of the reforms to implement two estimators that address endogeneity bias in a complementary fashion: an IV approach and Generalized Propensity Score estimation. Our results show that some of the reforms had a positive impact on productivity, but they also underscore the risks of quantity-based incentives where quality is important.

Files

  • thumnail for WP_10_-_Bogaard_Svejnar.pdf WP_10_-_Bogaard_Svejnar.pdf application/download 1.27 MB Download File

More About This Work

Academic Commons provides global access to research and scholarship produced at Columbia University, Barnard College, Teachers College, Union Theological Seminary and Jewish Theological Seminary. Academic Commons is managed by the Columbia University Libraries.