Performance related pay in Belgium and The Netherlands

Individual worker data is used to identify which types of workers and firms choose PRP in Belgium and The Netherlands. The results show that there are significant differences across these neighbouring countries in terms of th e workers who choose PRP systems and the firms who adopt them. Results supp ort the previously identified and positive relationship between firm size a nd use of PRP. In addition, interesting differences are found concerning th e natue of industrial relations and the use of PRP.