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Piece‐rate cuts and ratchet effects

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  • Bruce S. Shearer

Abstract

I use a quasi experiment, conducted in the field, to evaluate how the workers of an economic firm responded to threats to cut their piece rates. During the study, the piece rate paid to workers was initially set above the regular rate, given working conditions. In a commitment treatment this high rate was paid without any threat of revision. During a non‐commitment trial, the high rate was accompanied by a threat from management to reduce the rate if, after two days of work, average earnings were too high. The empirical results display strong ratchet effects. Workers withheld output by 16% under non‐commitment relative to commitment. The firm eventually reduced the piece rate from the initial high rate, but left it above the regular rate, giving workers the possibility to extract rents. Workers showed no tendency to restrict output during this phase of the study. Réduction du salaire à la pièce et effets de cliquet. Je me sers d'une quasi‐expérience, réalisée sur le terrain, pour évaluer comment les travailleurs d'une entreprise de l'économie réelle ont réagi à des menaces de réduire leur salaire à la pièce. Pendant l'étude, le salaire à la pièce versé aux travailleurs était, au départ, fixé au‐dessus du salaire habituel en raison des conditions de travail. Dans le cadre du traitement promis, ce salaire élevé a été versé sans menace de révision. Pendant un essai qui ne comportait aucune promesse, le salaire élevé a été accompagné d'une menace de réduire le salaire à la pièce si, après deux jours de travail, les gains moyens étaient trop élevés. Les résultats empiriques font ressortir de puissants effets de cliquet. Les travailleurs ont réduit leur production de 16 % sans promesse comparativement à celui avec promesse. L'entreprise a fini par réduire le salaire à la pièce par rapport au salaire élevé initial, mais le nouveau salaire était tout de même supérieur au salaire initial, donnant aux travailleurs la possibilité de bénéficier d'une rente. Pendant cette phase de l'étude, les travailleurs n'ont pas eu tendance à réduire leur productivité.

Suggested Citation

  • Bruce S. Shearer, 2022. "Piece‐rate cuts and ratchet effects," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1371-1403, August.
  • Handle: RePEc:wly:canjec:v:55:y:2022:i:3:p:1371-1403
    DOI: 10.1111/caje.12607
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