Do Salaries Improve Worker Performance? Do Salaries Improve Worker Performance?

  • Alex Bryson Babatunde Buraimo
  • Published 2010
We establish the effects of salaries on worker performance by exploiting a natural experiment in which some workers in a particular occupation (football referees) switch from short-term contracts to salaried contracts. Worker performance improves among those who move onto salaried contracts relative to those who do not. The finding is robust to the… CONTINUE READING