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The project studies how the features of incentive pay plans affect their productivity effects using both large scale firm-level data sets and case studies. The results can be used to design more effective incentive plans.
The main research questions are: How do the features of incentive plans affect their productivity effects? Have the incentive plans changed in Finland in recent years? How and why do incentive pay lead to distortions?
The project co-ordinator is Dr. Antti Kauhanen. The project is funded by Tekes (the Finnish Funding Agency for Technology and Innovation) and it is scheduled to run from 1 March 2011 to 28 February 2013.
