The Economics of Performance Appraisals

Marc-Arthur Diaye () and Nathalie Greenan
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Marc-Arthur Diaye: TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé

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Abstract: Performance appraisals have become a widespread practice in OECD member countries. However, whereas the problem of constructing an optimal contract with subjective evaluation receives a lot of attention, rmlevel performance appraisals are strikingly left outside of economic theory. The purpose of this paper is threefold: rst, to theoretically de ne what performance appraisals are; second, to analyze the e ects of incentive contracts on e ort and wage using performance appraisals; and third, to theoretically quantify the selection e ects driven by the implementation of performance appraisals.

Keywords: Performance appraisals; Super-modularity; Selection; Work intensi cation (search for similar items in EconPapers)
Date: 2012-08-03
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00856229v1
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Working Paper: The Economics of Performance Appraisals (2012)
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