A man dressed in a suit and tie smiling into the cameraJoshua Fullard, Lecturer in Economics at the University of Essex, shares the findings of his data-driven research into teacher pay and student outcomes.
A consistent finding among labour economics is austria rcs data that higher wages often lead to individuals working harder, or more productively, in some quantifiable way. One of the most famous examples of this is when Henry Ford introduced the ‘five-dollar day’ at his Ford Motor Company in 1914, which, in the process of more than doubling wages, resulted in an increase in productivity of up to 70 per cent.
Interestingly, the relationship between wages and productivity holds in a range of settings including those who work in vocational occupations. Two notable examples are shown in the work of Ferraz and Finan (2011), who find that higher wages improve the performance of politicians in Brazil, and of Mas (2006), who finds that higher wages improve the performance of the police in New Jersey.