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Firms' choice of method of pay

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Author Info
Charles Brown

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Abstract

Using data from the BLS Industry Wage Survey, the author tests the theory that firms choose their methods of pay by balancing the gains from more precise links between performance and pay against monitoring costs. The results confirm most of the predictions from the general theory. For example, large firms make significantly greater use of standard-rate pay than do small firms, and incentive pay (such as piece rates) is less likely in jobs with a variety of duties than in jobs with a narrow set of routines. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 43 (1990)
Issue (Month): 3 (February)
Pages: 165-182
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Handle: RePEc:ilr:articl:v:43:y:1990:i:3:p:165-182

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 30(2), pages 175-187, January.
  2. Barron, John M & Loewenstein, Mark A, 1986. "On Imperfect Evaluation and Earning Differentials," Economic Inquiry, Oxford University Press, vol. 24(4), pages 595-614, October.
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This page was last updated on 2009-11-23.

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