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High Performance Work Systems, Industrial Relations and Pay Policies in Europe


  • Paolo GHINETTI
  • Claudio LUCIFORA

    (Universita' Cattolica di Milano)


The present study uses data for workplaces in all sectors of ten European countries to investigate whether firms that have introduced new forms of work organisation are more likely to use variable pay schemes. Also the role played by institutional forces and employees’ representatives is investigated. New regimes of work organisation are characterised by both new work practices – such as teams, job rotation, multitasking and flat hierarchies – and higher levels of direct participation by employees. We find that, in general, schemes of variable pay are more likely to be introduced where new work practices are in place. The presence of employees’ representatives increases the probability of variable pay, but only when they co-operate with the management in decision-making.

Suggested Citation

  • Carlo DELL’ARINGA & Paolo GHINETTI & Claudio LUCIFORA, 2005. "High Performance Work Systems, Industrial Relations and Pay Policies in Europe," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(2), pages 215-240.
  • Handle: RePEc:vep:journl:y:2005:v:113:i:2:p:215-240

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    Cited by:

    1. Bruce E. Kaufman, 2013. "The economic organization of employment: systems in human resource management and industrial relations," Chapters,in: Handbook of Economic Organization, chapter 16 Edward Elgar Publishing.

    More about this item


    new work organisation; employees representation; variable pay policies.;

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J59 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Other
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management


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