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Piece Rates, Fixed Wages, and Incentive Effects : Statistical Evidence From Payroll Records

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Author Info

  • Paarsch, H-J
  • Shearer, B

Abstract

We estimate the gain in productivity that is realized by paying workers piece rates rather than fixed wages; i.e., the incentive effect.

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Bibliographic Info

Paper provided by Laval - Recherche en Energie in its series Papers with number 9623.

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Length: 48 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:lavaen:9623

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Postal: UNIVERSITE LAVAL, GREEN, DEPARTEMENT D'ECONOMIQUE, QUEBEC G1K 7P4.
Phone: (418) 656-2096
Fax: (418) 656-7412
Web page: http://www.green.ecn.ulaval.ca/
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Keywords: PRODUCTIVITY; WAGES; STATISTICAL ANALYSIS;

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References

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  1. Jones, Derek C & Kato, Takao, 1995. "The Productivity Effects of Employee Stock-Ownership Plans and Bonuses: Evidence from Japanese Panel Data," American Economic Review, American Economic Association, vol. 85(3), pages 391-414, June.
  2. FERRALL, Christopher & SHEARER, Bruce, 1994. "Incentives, Team Production, Transactions Costs, and the Optimal Contract: Estimates of an Agency Model using Payroll Records," Cahiers de recherche 9416, Université Laval - Département d'économique.
  3. Edward P. Lazear, 1996. "Performance Pay and Productivity," NBER Working Papers 5672, National Bureau of Economic Research, Inc.
  4. Bengt Holmstrom & Paul R. Milgrom, 1985. "Aggregation and Linearity in the Provision of Intertemporal Incentives," Cowles Foundation Discussion Papers 742, Cowles Foundation for Research in Economics, Yale University.
  5. Oliver Hart & Bengt Holmstrom, 1986. "The Theory of Contracts," Working papers 418, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Charles Brown, 1990. "Firms' Choice of Method of Pay," NBER Working Papers 3065, National Bureau of Economic Research, Inc.
  7. Sanford Grossman & Oliver Hart, . "An Analysis of the Principal-Agent Problem," Rodney L. White Center for Financial Research Working Papers 15-80, Wharton School Rodney L. White Center for Financial Research.
  8. Lazear, Edward P, 1986. "Salaries and Piece Rates," The Journal of Business, University of Chicago Press, vol. 59(3), pages 405-31, July.
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