IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/v5y1987i4ps36-56.html
   My bibliography  Save this article

The Recognition and Reward of Employee Performance

Author

Listed:
  • Bishop, John

Abstract

This paper examines when and to what extent an individual's relative wage de pends on his/her productivity relative to others doing the same job. Starting wages were influenced by background characteristics and trai ning cost realizations but not by relative productivity. Wages one ye ar later were influenced by productivity but the effects were small. The wage elasticity was 0.2 at small establishments and 0.0 at establ ishments with over four hundred employees. The wage response to relat ive pro-ductivity and training costs was weaker in small labor market s, suggesting that wages do not fully respond to performance because of the firm specificity of job performance differentials. Copyright 1987 by University of Chicago Press.

Suggested Citation

  • Bishop, John, 1987. "The Recognition and Reward of Employee Performance," Journal of Labor Economics, University of Chicago Press, vol. 5(4), pages 36-56, October.
  • Handle: RePEc:ucp:jlabec:v:5:y:1987:i:4:p:s36-56
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0734-306X%28198710%295%3A4%3CS36%3ATRAROE%3E2.0.CO%3B2-J&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
    2. Harry J. Holzer, 1989. "Wages, Employer Costs, and Employee Performance in the Firm," NBER Working Papers 2830, National Bureau of Economic Research, Inc.
    3. Harley Frazis & Mark A Loewenstein, 2006. "Wage Compression and the Division of Returns to Productivity Growth: Evidence from EOPP," Working Papers 398, U.S. Bureau of Labor Statistics.
    4. Eriksson, Stefan & Gottfries, Nils, 2005. "Ranking of job applicants, on-the-job search, and persistent unemployment," Labour Economics, Elsevier, vol. 12(3), pages 407-428, June.
    5. van Dalen, Hendrik P., 1996. "Pitfalls in the economic analysis of aging," Journal of Policy Modeling, Elsevier, vol. 18(2), pages 157-184, April.
    6. Bowman, William R. & Mehay, Stephen L., 1999. "Graduate education and employee performance: evidence from military personnel," Economics of Education Review, Elsevier, vol. 18(4), pages 453-463, October.
    7. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    8. Schlicht, Ekkehart, 2007. "Wage Dispersion, Over-Qualification, and Reder Competition," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 1, pages 1-31.
    9. Canice Prendergast, 1996. "What Happens Within Firms? A Survey of Empirical Evidence on Compensation Policies," NBER Working Papers 5802, National Bureau of Economic Research, Inc.
    10. W. Bentley MacLeod & Daniel Parent, 1998. "Job Characteristics and the Form of Compensation," CIRANO Working Papers 98s-08, CIRANO.
    11. Gerst, Benedikt & Grund, Christian, 2017. "Career Interruptions and Current Earnings: The Role of Interruption Type, Compensation Component, and Gender," IZA Discussion Papers 10713, Institute for the Study of Labor (IZA).
    12. Flabbi, Luca & Ichino, Andrea, 2001. "Productivity, seniority and wages: new evidence from personnel data," Labour Economics, Elsevier, vol. 8(3), pages 359-387, June.
    13. Serneels, Pieter, 2008. "Human capital revisited: The role of experience and education when controlling for performance and cognitive skills," Labour Economics, Elsevier, vol. 15(6), pages 1143-1161, December.
    14. Pieter Serneels, 2005. "Do Wages reflect Productivity?," Economics Series Working Papers GPRG-WPS-029, University of Oxford, Department of Economics.
    15. William Blankenau & Gabriele Camera, 2009. "Public Spending on Education and the Incentives for Student Achievement," Economica, London School of Economics and Political Science, vol. 76(303), pages 505-527, July.
    16. William Blankenau & Gabriele Camera, 2006. "A Simple Economic Theory of Skill Accumulation and Schooling Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(1), pages 93-115, January.
    17. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(4), pages 436-460, August.
    18. Tennert, Julius & Lambert, Marie & Burghof, Hans-Peter, 2017. "Moral hazard in VC finance: More expensive than you thought," Hohenheim Discussion Papers in Business, Economics and Social Sciences 02-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    19. Richard K. Johanson & Arvil V. Adams, 2004. "Skills Development in Sub-Saharan Africa," World Bank Publications, The World Bank, number 15028.
    20. Todd R. Zenger & Sergio G. Lazzarini, 2004. "Compensating for innovation: Do small firms offer high-powered incentives that lure talent and motivate effort?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 329-345.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:5:y:1987:i:4:p:s36-56. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division). General contact details of provider: http://www.journals.uchicago.edu/JOLE/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.