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Effort Incentives : Evidence from Japanese Data

Author

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  • Itoh, H
  • Teruyama, H

Abstract

Many attempts have been made to explain practical pay and promotion systems in a firm as a consequence of rational behaviour of both the employer and the employee. Recently the incentive theory has played a key role in this literature. The main subject of the incentive approachesis analyzing how pay and promotion systems are organized in order to provide workers with incentives for greater effort. Despite many theoretical contributions, few empirical studies to examine the relevance of basic presumptions shared by many incentive models have been made so far. This chapter aims to empirically investigate whether the basic assumptions behind the incentive models are relevant in practice or not.

Suggested Citation

  • Itoh, H & Teruyama, H, 1997. "Effort Incentives : Evidence from Japanese Data," ISER Discussion Paper 0433, Institute of Social and Economic Research, Osaka University.
    • Handle: RePEc:dpr:wpaper:0433
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    More about this item

    Keywords

    PAYMENT SYSTEMS ; INCENTIVES ; JAPAN;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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