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Union Coverage, Membership and Performance-Related Pay: Are Piece Rates Different?

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  • Patrick O'Halloran

Abstract

This paper revisits a literature on the links between unionisation and performance-related pay (PRP), which offers a disparate set of results. Part of the reason for this is the usual inability to distinguish between different types of PRP and the lack of rich panel data containing such measures. Analysis of panel data containing six separate PRP schemes reveals that union members are less likely to receive PRP in general and less likely to receive bonus payments, stock options, or profit sharing than non-members. Furthermore, profit sharing is negatively related to both union membership and coverage. However, union members or those covered by a union contract are more likely to be paid piece rates, providing further evidence that piece-rate pay differs from other forms of PRP.

Suggested Citation

  • Patrick O'Halloran, 2013. "Union Coverage, Membership and Performance-Related Pay: Are Piece Rates Different?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 226(1), pages 30-41, November.
  • Handle: RePEc:sae:niesru:v:226:y:2013:i:1:p:r30-r41
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    More about this item

    Keywords

    performance pay; unions; piece rates;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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