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The Choice of Payment Schemes: Australian Establishment Data

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Author Info
Robert W Drago () (University of Wisconsin - Milwaukee)
John S. Heywood

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Abstract

We use Australian establishment data to estimate the determinants of incentive schemes. Hypotheses are drawn from the new economics of personnel and the strategic choice literatures. Larger firms are more likely to use individual schemes such as piece rates. Firms where female workers predominate or those facing stiff product market competition are more likely to use both piece rates and profit sharing. We also isolate the effects of monitoring, job security, and the industrial relations climate.

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File URL: ftp://ftp.csd.uwm.edu/pub/drago/incentab.ps
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Publisher Info
Paper provided by University of Wisconsin - Milwaukee in its series Working papers with number _006.

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Date of creation: Oct 1995
Date of revision:
Publication status: Forthcoming _Industrial_Relations_
Handle: RePEc:wop:wimihp:_006

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Postal: Bolton Hall, Room 868, Milwaukee, WI 53201
Phone: (414) 229-4811
Fax: (414) 229-3860
Web page: http://www.uwm.edu/Dept/Economics/
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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. Gregg, P. A & Machin, S. j, 1987. "Unions and the Incidence of Performance Linked Pay Schemes in Britain," The Warwick Economics Research Paper Series (TWERPS) 286, University of Warwick, Department of Economics.
    Other versions:
  2. Seiler, Eric, 1984. "Piece Rate vs. Time Rate: The Effect of Incentives on Earnings," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 363-76, August. [Downloadable!] (restricted)
  3. Belman, Dale & Heywood, John S, 1992. "Wages, Incentive Schemes, and the Role of Gender," Review of Social Economy, Taylor and Francis Journals, vol. 50(2), pages 149-62, Summer.
  4. Richard B. Freeman, 1982. "Union wage practices and wage dispersion within establishments," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 36(1), pages 3-21, October.
    Other versions:
  5. Charles Brown, 1990. "Firms' choice of method of pay," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(3), pages 165-182, February.
  6. Garen, John E, 1985. "Worker Heterogeneity, Job Screening, and Firm Size," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 715-39, August. [Downloadable!] (restricted)
  7. Goldin, Claudia, 1986. "Monitoring Costs and Occupational Segregation by Sex: A Historical Analysis," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 1-27, January. [Downloadable!] (restricted)
  8. Drago, Robert, 1991. "Incentives, Pay, and Performance: A Study of Australian Employees," Applied Economics, Taylor and Francis Journals, vol. 23(9), pages 1433-46, September.
  9. Oliver Hart & Bengt Holmstrom, 1986. "The Theory of Contracts," Working papers 418, Massachusetts Institute of Technology (MIT), Department of Economics.
  10. Charles Brown, 1990. "Firms' Choice of Method of Pay," NBER Working Papers 3065, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December. [Downloadable!] (restricted)
    Other versions:
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(explanations, 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. W.D. McCausland & K. Pouliakas & I. Theodossiou, 2005. "Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction," Labor and Demography 0505019, EconWPA. [Downloadable!]
  2. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December. [Downloadable!] (restricted)
    Other versions:
  3. Cowling, Marc, 2007. "Performance Related Pay Coverage in the UK," MPRA Paper 1619, University Library of Munich, Germany. [Downloadable!]
  4. John S Heywood & Colin Green, 2007. "Performance pay, sorting and the dimensions of job satisfaction," Working Papers 004731, Lancaster University Management School, Economics Department. [Downloadable!]
  5. Edward P. Lazear & Kathryn L. Shaw, 2007. "Personnel Economics: The Economist's View of Human Resources," NBER Working Papers 13653, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Simon Burgess & Marisa Ratto, 2003. "The Role of Incentives in the Public Sector: Issues and Evidence," The Centre for Market and Public Organisation 03/071, Department of Economics, University of Bristol, UK. [Downloadable!]
  7. Erik Poutsma & Paul E. M. Ligthart & Roel Schouteten, 2005. "Employee Share Schemes in Europe. The Influence of US Multinationals," Management Revue, Rainer Hampp Verlag, vol. 16(1), pages 99-122. [Downloadable!]
  8. Pouliakas, Konstantinos & Theodossiou, Ioannis, 2004. "Confronting Objections to Performance Pay: A Study of the Impact of Individual and Gain-sharing Incentives on the Job Satisfaction of British Employees," MPRA Paper 1629, University Library of Munich, Germany, revised 31 Jan 2007. [Downloadable!]
  9. Felipe Balmaceda, . "Compensation Methods in Competitive Labor Markert," ILADES-Georgetown University Working Papers inv118, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
  10. Felipe Balmaceda, 2002. "Compensation Methods in a Competitive Labor Market: the Role of Asymmetric Information," Documentos de Trabajo 139, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  11. S Fernie & D Metcalf, 1998. "(Not)Hanging on the Telephone: Payment systems in the New Sweatshops," CEP Discussion Papers 0390, Centre for Economic Performance, LSE. [Downloadable!]
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