CEU eTD Collection (2018); Szinvai, Levente: Do incentives affect productivity? Evidence from the Hungarian telecommunications industry

CEU Electronic Theses and Dissertations, 2018
Author Szinvai, Levente
Title Do incentives affect productivity? Evidence from the Hungarian telecommunications industry
Summary This thesis investigates the effect of a change in the reward scheme on the performance of the employees. The research is based on a policy change which increased the guaranteed wage minimum in Hungary in January 2017 and looks into the response of a Hungarian telecommunications company. In the methodology of the thesis panel data methods are used, namely Pooled OLS, and first differences methods as well as binary outcome models. In line with the previous literature I find that there was a drop in performance, even though not all results point in this direction. Furthermore, I find that there is no difference between the performance of those who left the company and those who stayed after the policy change. This thesis contributes to the literature on organizational economics by investigating the effect of a change in the proportion of the performance related payment instead of a change from fixed salary to piece-rate.
Supervisor De Chiara, Alessandro
Department Economics MA
Full texthttps://www.etd.ceu.edu/2018/szinvai_levente.pdf

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