The Response of Worker Effort to Piece Rates: Evidence from the Midwest Logging Industry
AbstractUsing firm-level payroll data from the Midwest logging industry, I compute a worker’s productivity response to a change in piece-rate pay, an elasticity of effort, using an empirical specification developed in Paarsch and Shearer (1999). Maximum-likelihood estimation of an agency-based structural econometric model of worker choice yields elasticities ranging from 0.413 to 1.507. These estimates are smaller than, but qualitatively similar to, those reported in Paarsch and Shearer, suggesting that their model has perhaps more general applicability than their British Columbia tree-planting example.
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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 38 (2003)
Issue (Month): 4 ()
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- Harry J. Paarsch & Bruce S. Shearer, 2004.
"Male-Female Productivity Differentials: The Role of Ability and Incentives,"
CIRANO Working Papers
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"Piece Rates and Workplace Injury: Does Survey Evidence Support Adam Smith?,"
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- Keith Bender & Colin Green & John Heywood, 2012. "Piece rates and workplace injury: Does survey evidence support Adam Smith?," Journal of Population Economics, Springer, vol. 25(2), pages 569-590, January.
- Harry J. Paarsch & Bruce S. Shearer, 2004. "Male-Female Productivity Differentials: the Role of Ability and Incentives (revised)," Cahiers de recherche 0410, CIRPEE.
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