Paying for productivity a look at the evidence alan blinder is the gordon s rentschler memorial professor of economics and codirector of the center for economic policy studies at princeton . Will higher pay provide an incentive for better work can productivity be increased by changing the way workers are compensated in response to the urgent need to improve productivity performance in american industry leading economists examine alternative compensation schemes to assess their efficiency in raising productivity. Pay productivity and the public sector the case of electrical engineers other studies often reveal a slight pay advantage for line workers in mean comparable pay the evidence presented . This means that if equal pay legislation forced firms to change the pay of women we may expect many firms to stop hiring women mothers low productivity hurts overall pay for women thehill . Sharing or stock options in their pay package othese plans generally come on top of market level pay and benefits greatly reducing risk since workers are not sacrificing fixed pay othe biggest financial risk faced by most workers is job loss which studies suggest is reduced by employee ownership
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