Prof. Erina Ytsma (Carnegie Mellon) on the Effects of Performance Pay in Knowledge Creation

In this episode of the vlog & podcast series of ETH's Center for Law & Economics, Professor Erina Ytsma from Carnegie Mellon discusses her study “Effort and Selection Effects of Performance Pay in Knowledge Creation” with Dr. Amit Zac (Postdoc at ETH Zurich). It is well-documented that performance pay has positive effort and selection effects in routine tasks, while its effect in knowledge creation is much less understood. In her study, Ytsma analyses the effects of explicit and implicit career concerns incentives common in knowledge work in a multi-tasking model, and estimates the causal effort and selection effects of performance incentives in knowledge creation, using the introduction of performance pay in German academia as a natural experiment.  Paper Reference:   Erina Ytsma – Carnegie Mellon University, Tepper School of Business   Effort and Selection Effects of Performance Pay in Knowledge Creation https://gitlab.com/eytsma/research_papers/raw/master/Effort+Selection_Effects-KnowledgeCreation_ErinaYtsma_latest.pdf Audio Credits for Trailer: AllttA by AllttA   https://youtu.be/ZawLOcbQZ2w