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Fixed Wages, Piece Rates, and Intertemporal Productivity: a Study of tree Planters in British Columbia

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Author Info
Paarsch, Harry J.
Shearer, Bruce () (Universite Laval, Departement d'economique)

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Abstract

We examine the effects of different sequences of work and rest on the daily productivity of workers who planted trees in the province of British Columbia, Canada, comparing the intertemporal productivity profiles of planters who were paid either fixed wages or piece rates. We find that planters who are paid piece rates produce more, on average, than those who are paid fixed wages, but that the productivity of piece-rate planters falls with the number of consecutive days worked; the fall in productivity is between three and five percent per day. Fixed-wage planters, on the other hand, showed no such decreases.

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File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/1997/9702.pdf
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Publisher Info
Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9702.

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Date of creation: 1997
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Handle: RePEc:lvl:laeccr:9702

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Related research
Keywords: Compensation Systems; Productivity; Rest; Recuperation;

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Find related papers by JEL classification:
D2 - Microeconomics - - Production and Organizations
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Marcel Boyer, 1997. "Competition and Access in Telecoms: ECPR, Global Price Cap, and Auctions," CIRANO Working Papers 97s-03, CIRANO. [Downloadable!]
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  1. Oriana Bandiera (STICERD & LSE, 2004. "Relative and Absolute Incentives: Evidence on Worker Productivity," Econometric Society 2004 North American Summer Meetings 277, Econometric Society. [Downloadable!]
    Other versions:
  2. Lazear, Edward P., 2003. "Output-Based Pay: Incentives, Retention or Sorting?," IZA Discussion Papers 761, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December. [Downloadable!] (restricted)
  4. Edward P. Lazear, 1996. "Performance Pay and Productivity," NBER Working Papers 5672, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Edward P. Lazear, 1999. "Output-based Pay: Incentives or Sorting?," NBER Working Papers 7419, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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