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

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  • Paarsch, Harry J.
  • Shearer, Bruce

    ()
    (Universite Laval, Departement d'economique)

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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Bibliographic 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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Keywords: Compensation Systems; Productivity; Rest; Recuperation;

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  1. Marcel Boyer, 1997. "Competition and Access in Telecoms: ECPR, Global Price Cap, and Auctions," CIRANO Working Papers 97s-03, CIRANO.
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Cited by:
  1. Edward P. Lazear, 1999. "Output-based Pay: Incentives or Sorting?," NBER Working Papers 7419, National Bureau of Economic Research, Inc.
  2. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2005. "Social Preferences and the Response to Incentives: Evidence from Personnel Data," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 917-962, August.
  3. Oriana Bandiera (STICERD & LSE, 2004. "Relative and Absolute Incentives: Evidence on Worker Productivity," Econometric Society 2004 North American Summer Meetings 277, Econometric Society.
  4. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
  5. Lazear, Edward, 2003. "Output-Based Pay: Incentives, Retention or Sorting?," IZA Discussion Papers 761, Institute for the Study of Labor (IZA).

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