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With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content. ga Google Analytics Imprint | Privacy Policy Accept For media Find a topic spokesperson Press Releases for contributors about contact iza IZA Newsroom subscribe to newsletter Login Email Password Login forgot your password? Remember Me register Articles Program evaluation Occupational and classroom training Wage subsidies and in-work benefits Counseling, sanctioning, and monitoring Micro-credits and start-up subsidies Child-care support, early childhood education, and schooling Behavioral and personnel economics Pay and incentives Organization and hierarchies Human resource management practices Migration and ethnicity Labor mobility Performance of migrants Implications of migration Migration policy Labor markets and institutions Wage setting Insurance policies Redistribution policies Labor market regulation Entrepreneurship Transition and emerging economies Labor supply and demand Gender issues Demographic change and migration Institutions, policies, and labor market outcomes Development Active labor market programs Microfinance and financial regulations Technological change Social insurance Skills and training programs Environment Education and human capital Economic returns to education Social returns to education Schooling and higher education Vocational education, training skills, and lifelong learning Demography, family, and gender Demography Family Gender Health Data and methods Data Methods Country labor markets View all articles Key topics Country labor markets Youth unemployment How should governments manage recessions? Workplace discrimination The aging workforce and pensions reform Digital transformation, big data, and the future of work View all Opinions Videos Authors Events search advanced search Login Email Password Login forgot your password? Remember Me register First Name Last Name Email re-type your email address Password re-type your password areas of interest Clear all Select all Selecting your areas of interest helps us to better understand our audience. Program evaluation Behavioral and personnel economics Migration and ethnicity Labor markets and institutions Transition and emerging economies Development Environment Education and human capital Demography, family, and gender Data and methods Country labor markets I would like to register for the IZA World of Labor newsletter I would like to register for the IZA World of Labor article alerts I agree to the terms and conditions and data usage policy Create Account search advanced search Articles Program evaluation Occupational and classroom training Wage subsidies and in-work benefits Counseling, sanctioning, and monitoring Micro-credits and start-up subsidies Child-care support, early childhood education, and schooling Behavioral and personnel economics Pay and incentives Organization and hierarchies Human resource management practices Migration and ethnicity Labor mobility Performance of migrants Implications of migration Migration policy Labor markets and institutions Wage setting Insurance policies Redistribution policies Labor market regulation Entrepreneurship Transition and emerging economies Labor supply and demand Gender issues Demographic change and migration Institutions, policies, and labor market outcomes Development Active labor market programs Microfinance and financial regulations Technological change Social insurance Skills and training programs Environment Education and human capital Economic returns to education Social returns to education Schooling and higher education Vocational education, training skills, and lifelong learning Demography, family, and gender Demography Family Gender Health Data and methods Data Methods Country labor markets View all articles Key topics Country labor markets Youth unemployment How should governments manage recessions? Workplace discrimination The aging workforce and pensions reform Digital transformation, big data, and the future of work View all Opinions Videos Authors Events login register advanced search For media Find a topic spokesperson Press Releases for contributors about contact iza IZA Newsroom subscribe to newsletter Articles Program evaluation Occupational and classroom training Wage subsidies and in-work benefits Counseling, sanctioning, and monitoring Micro-credits and start-up subsidies Child-care support, early childhood education, and schooling Behavioral and personnel economics Pay and incentives Organization and hierarchies Human resource management practices Migration and ethnicity Labor mobility Performance of migrants Implications of migration Migration policy Labor markets and institutions Wage setting Insurance policies Redistribution policies Labor market regulation Entrepreneurship Transition and emerging economies Labor supply and demand Gender issues Demographic change and migration Institutions, policies, and labor market outcomes Development Active labor market programs Microfinance and financial regulations Technological change Social insurance Skills and training programs Environment Education and human capital Economic returns to education Social returns to education Schooling and higher education Vocational education, training skills, and lifelong learning Demography, family, and gender Demography Family Gender Health Data and methods Data Methods Country labor markets View all articles Key topics Country labor markets Youth unemployment How should governments manage recessions? Workplace discrimination The aging workforce and pensions reform Digital transformation, big data, and the future of work View all Opinions Videos Authors Events Evidence-based policy making IZA World of Labor is an online platform that provides policy analysts, journalists, academics and society generally with relevant and concise information on labor market issues. Based on the latest research, it provides current thinking on labor markets worldwide in a clear and accessible style. IZA World of Labor aims to support evidence-based policy making and increase awareness of labor market issues, including current concerns like the impact of Covid-19, and longer-term problems like inequality. Featured Article Behavioral and personnel economics Labor markets and institutions Performance-related pay and productivity Updated Do performance-related pay and financial participation schemes have an effect on firms’ performance? Claudio Lucifora and Federica Origo A growing number of firms offer compensation packages that link pay to performance. The aim is to motivate workers to be more efficient while also increasing their attachment to the company, thereby reducing turnover and absenteeism. The effects of performance-related pay on productivity depend on the scheme type and design, with individual incentives showing the largest effect. Governments often offer tax breaks and financial incentives to promote performance-related pay, though their desirability has been questioned due to large deadweight losses involved....