Group vs. Individual Performance Pay When Workers Are Envious
AbstractWe compare the wage costs of providing incentives through group versus individual bonus schemes. When workers are envious, either scheme may be the least cost one owing to the trade-off between the dissatisfaction with the prospect of unequal pay and the incentives it generates Nous comparons les coûts salariaux des rémunérations incitatives par bonus de groupe et par bonus individuels. Quand les travailleurs ont une propension à l'envie, l'un ou l'autre de ces modes de rémunération peut s'avérer le moins coûteux étant donné l'arbitrage entre l'insatisfaction associée aux inégalités salariales et les incitations à l'effort qu'elles engendrent.
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Bibliographic InfoPaper provided by CIRANO in its series CIRANO Working Papers with number 2003s-10.
Date of creation: 01 Apr 2003
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Bonus; Efficiency Wage; Envy; Fairness; Incentives; Bonus; salaire d'efficience; envie; équité; incitations;
Other versions of this item:
- Dominique Demougin & Claude Fluet, 2003. "Group vs. Individual Performance Pay When Workers Are Envious," Cahiers de recherche 0318, CIRPEE.
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- J4 - Labor and Demographic Economics - - Particular Labor Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-27 (All new papers)
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