• The effect of wages on workers performance

    Happy workers, salary day

    The effect of wages on worker performance is determined by a natural experience in which some workers in a particular profession (football referees) with short-term contracts convert to paid contracts. The job performance of contract workers improved compared to those who did not receive pay contracts. This conclusion is strong for the introduction of fixed effects for workers, indicating that the effects are not driven by better workers but rather workers who get contracts in which the value of wages is clearly stated.