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Collectivism versus individualism: performance-related pay and union coverage for non-standard workers in Britain

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  • Booth, Alison L.
  • Francesconi, Marco

Abstract

This paper documents the extent of union coverage and performance-related pay (PRP) the latter representing one aspect of pay flexibility across standard and non-standard workers in Britain, using the first seven waves of the British Household Panel Survey, 1991-1997. We find there is no evidence of expansion of either union coverage or PRP towards any type of non-standard employment in the 1990s. Thus union rhetoric about a strategy of enlargement towards non-standard workers remains just that. The only trend over time that we do observe is a continued small decline in union coverage for all male workers (but not for women) and a continued very small growth in PRP coverage for all women (but not for men). In addition, while we find large gender differences in union coverage across non-standard workers, there are only negligible gender differences in PRP incidence. Moreover, the relationship between non-standard employment and PRP is typically weak for both men and women. We also find significant occupational and sectoral differences in union coverage and PRP incidence across non-standard workers.

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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2000-35.

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Date of creation: 01 Nov 2000
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Publication status: published
Handle: RePEc:ese:iserwp:2000-35

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Phone: 44-1206-872957
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web: https://www.iser.essex.ac.uk/publications/

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References

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  1. Booth, Alison L & Frank, Jeff, 1999. "Earnings, Productivity, and Performance-Related Pay," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 447-63, July.
  2. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  3. Nicholas Bacon & John Storey, 2000. "New Employee Relations Strategies in Britain: Towards Individualism or Partnership?," British Journal of Industrial Relations, London School of Economics, vol. 38(3), pages 407-427, 09.
  4. Gibbons, Robert & Waldman, Michael, 1999. "Careers in organizations: Theory and evidence," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 36, pages 2373-2437 Elsevier.
  5. repec:ese:iserwp:2000-13 is not listed on IDEAS
  6. Lewis Segal & Daniel Sullivan, 1996. "The growth of temporary services work," Working Paper Series, Macroeconomic Issues WP-96-26, Federal Reserve Bank of Chicago.
  7. Charles Brown, 1990. "Firms' Choice of Method of Pay," NBER Working Papers 3065, National Bureau of Economic Research, Inc.
  8. Wiji Arulampalam & Alison L. Booth, 2000. "Union status of young men in Britain: a decade of change," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(3), pages 289-310.
  9. Machin, Stephen, 1997. "The decline of labour market institutions and the rise in wage inequality in Britain," European Economic Review, Elsevier, vol. 41(3-5), pages 647-657, April.
  10. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398, October.
  11. Robert Gibbons, 1998. "Incentives in Organizations," NBER Working Papers 6695, National Bureau of Economic Research, Inc.
  12. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, vol. 64(4), pages 957-79, July.
  13. Polachek, Solomon W. & Kim, Moon-Kak, 1994. "Panel estimates of the gender earnings gap : Individual-specific intercept and individual-specific slope models," Journal of Econometrics, Elsevier, vol. 61(1), pages 23-42, March.
  14. Booth, Alison L & Frank, Jeff, 1994. "Seniority, Earnings and Unions," CEPR Discussion Papers 1007, C.E.P.R. Discussion Papers.
  15. Lazear, Edward P, 2000. "The Future of Personnel Economics," Economic Journal, Royal Economic Society, vol. 110(467), pages F611-39, November.
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Citations

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Cited by:
  1. Erling Barth & Bernt Bratsberg & Torbjørn Hægeland & Oddbjørn Raaum, 2008. "Performance Pay and Within-Firm Wage Inequality," Discussion Papers 535, Research Department of Statistics Norway.
  2. Stephen Drinkwater & Peter Ingram, 2003. "Have industrial relations in the UK really improved?," School of Economics Discussion Papers 0903, School of Economics, University of Surrey.
  3. Béjaoui, Ali & Montmarquette, Claude, 2009. "Rémunération à l’ancienneté et ajustement du marché du travail (Seniority-based Pay and Labour Market Adjustment)," CLSSRN working papers clsrn_admin-2009-23, Vancouver School of Economics, revised 13 Mar 2009.

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