---
title: "Performance Measurement and Incentive Plans"
authors:
  - name: "Kauhanen, Antti"
    url: "https://www.etla.fi/henkilot/kauhanen-antti/"
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      - "https://twitter.com/Antti_Kauhanen"
      - "https://sites.google.com/view/antti-kauhanen/home"
  - name: "Napari, Sami"
date_published: "2010-05-18"
series: "Discussion Papers no."
series_number: "1216"
jel_codes:
  - "J33"
  - "M52"
  - "M54"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/2012/09/dp1216.pdf"
keywords:
  - "incentive pay"
  - "performance measurement"
  - "risk versus distortion trade-off"
  - "agency theory"
identifier: "https://www.etla.fi/julkaisut/id/Discussion-Papers-no.-1216"
---

# Performance Measurement and Incentive Plans

**Published:** 2010-05-18  
**Categories:** Publikationer  
**Tags:** Diskussionsämnen  
**URL:** https://www.etla.fi/sv/publikationer/dp1216-en/

This paper explores performance measurement in incentive plans. Based on theory, we argue that differences in the nature of jobs between blue- and white-collar employees lead to differences in incentive systems. We find that performance measurement for white-collar workers is broader in terms of the performance measures, the organizational level of performance measurement and the time horizon. The intensity of incentives is also stronger for white-collar employees. All of these findings are consistent with theory.

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