Manthei, Kathrin; Sliwka, Dirk; Vogelsang, Timo - 2018
We run two field experiments within a large retail chain showing that the effectiveness of performance pay crucially … hinges on prior job experience. Introducing sales-based performance pay for district- and later for store-managers, we find … performance pay decreases with experience and may even vanish in the limit. We provide empirical evidence in line with this …