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Institutions and the Management of Human Resources: Incentive Pay Systems in France and Great Britain

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  • Richard Belfield
  • David Marsden

Abstract

Using data from large-scale establishment surveys in Britain and France, we show that incentive pay for non-managers is more widespread in France than in Britain. We explain this finding in terms of the 'beneficial constraint' arising from stronger employment protection in France, which provides an impulse to develop incentive pay; employer networking activities in France, which facilitate joint learning about its development and operation; and government fiscal incentives for profit-sharing, which reduces the cost of its operation.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0941.

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Date of creation: Jul 2009
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Handle: RePEc:cep:cepdps:dp0941

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: incentive systems; merit pay; profit-sharing; employer networks;

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References

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  5. Addison, John T. & Belfield, Clive R., 2007. "The Determinants of Performance Appraisal Systems: A Note (Do Brown and Heywood’s Results for Australia Hold Up for Britain?)," IZA Discussion Papers 3065, Institute for the Study of Labor (IZA).
  6. Casey Ichniowski & Kathryn Shaw, 2003. "Beyond Incentive Pay: Insiders' Estimates of the Value of Complementary Human Resource Management Practices," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 17(1), pages 155-180, Winter.
  7. repec:nsr:niesrd:319 is not listed on IDEAS
  8. John Forth, 2007. "Workplace Industrial Relations in Britain, 1980-2004," NIESR Discussion Papers, National Institute of Economic and Social Research 1467, National Institute of Economic and Social Research.
  9. Alex Bryson & Richard Freeman, 2008. "How Does Shared Capitalism Affect Economic Performance in the UK?," CEP Discussion Papers, Centre for Economic Performance, LSE dp0885, Centre for Economic Performance, LSE.
  10. Alex Bryson & Richard B. Freeman, 2007. "Doing the right thing? does fair share capitalism improve workplace performance," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 4964, London School of Economics and Political Science, LSE Library.
  11. Finegold, David, 1999. "Creating Self-Sustaining, High-Skill Ecosystems," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 15(1), pages 60-81, Spring.
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  14. Christopher L. Erickson & Sanford M. Jacoby, 2003. "The effect of employer networks on workplace innovation and training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(2), pages 203-223, January.
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  16. Dale Belman & Robert Drago & Mark Wooden, 1992. "Workgroups, Efficiency Wages and Work Effort," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 14(4), pages 497-521, July.
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Citations

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Cited by:
  1. David Marsden, 2010. "The End of National Models in Employment Relations?," CEP Discussion Papers, Centre for Economic Performance, LSE dp0998, Centre for Economic Performance, LSE.
  2. Noélie Delahaie & Richard Duhautois, 2013. "L'impact des dispositifs collectifs de partage des bénéfices sur les rémunérations en France. Une analyse empirique sur la période 1999-2007," Working Papers halshs-00967479, HAL.
  3. Urban Sila, 2009. "Can Family-Support Policies Help Explain Differences in Working Hours Across Countries?," CEP Discussion Papers, Centre for Economic Performance, LSE dp0955, Centre for Economic Performance, LSE.
  4. Michaël Zemmour, 2013. "Les dépenses socio-fiscales ayant trait à la protection sociale : état des lieux," Sciences Po publications info:hdl:2441/6o65lgig8d0, Sciences Po.
  5. Nicholas Oulton & Ana Rincon-Aznar, 2009. "Rates of Return and Alternative Measures of Capital Input: 14 Countries and 10 Branches, 1971-2005," CEP Discussion Papers, Centre for Economic Performance, LSE dp0957, Centre for Economic Performance, LSE.
  6. David Marsden, 2010. "The end of national models in employment relations?," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 48913, London School of Economics and Political Science, LSE Library.
  7. David Marsden, 2010. "Individual Voice in Employment Relationships: A Comparison Under Different Collective Voice Regimes," CEP Discussion Papers, Centre for Economic Performance, LSE dp1006, Centre for Economic Performance, LSE.
  8. repec:hal:wpaper:hal-00646434 is not listed on IDEAS
  9. Nicolas Castel & Noélie Delahaie & Héloïse Petit, 2011. "Quels modes de négociation face à des politiques salariales renouvelées ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00646434, HAL.

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