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Are Workers Rewarded for Inconsistent Performance?


Özdemir, Anil; Dietl, Helmut; Rossi, Giambattista; Simmons, Robert (2020). Are Workers Rewarded for Inconsistent Performance? UZH Business Working Paper Series 386, University of Zurich.

Abstract

This paper examines whether workers are rewarded for inconsistent performances by salary premia. Some earlier research suggests that performance inconsistency leads to salary premia while other research finds premia for consistent performances. Using detailed salary and performance data, we find that inconsistency is rewarded for some dimensions of performance, specifically those where creativity is important and outcomes have higher variance. We find salary penalties for inconsistent performances in those dimensions that are basic requirements of successful team production.

Abstract

This paper examines whether workers are rewarded for inconsistent performances by salary premia. Some earlier research suggests that performance inconsistency leads to salary premia while other research finds premia for consistent performances. Using detailed salary and performance data, we find that inconsistency is rewarded for some dimensions of performance, specifically those where creativity is important and outcomes have higher variance. We find salary penalties for inconsistent performances in those dimensions that are basic requirements of successful team production.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:20 March 2020
Deposited On:23 Mar 2020 07:44
Last Modified:23 Mar 2020 07:45
Series Name:UZH Business Working Paper Series
Number of Pages:39
ISSN:2296-0422
OA Status:Green
Free access at:Official URL. An embargo period may apply.
Official URL:https://ideas.repec.org/p/zrh/wpaper/386.html
Other Identification Number:merlin-id:19301

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