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http://hdl.handle.net/10419/20589
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| Title: | | Is Seniority-Based Pay Used as a Motivation Device? : Evidence from Plant Level Data  |
| Authors: | | Bayo-Moriones, Alberto Galdon-Sanchez, José Enrique Güell, Maia |
| Issue Date: | | 2004 |
| Series/Report no.: | | IZA Discussion paper series 1321 |
| Abstract: | | In this paper we use data from industrial plants to investigate if seniority-based pay is used as a motivational device for production workers. Alternatively, seniority-based pay could simply be a wage setting rule not necessarily related to the provision of incentives. Unlike previous papers, we use a direct measure of seniority-based pay as well as measures of monitoring devices and piece-rates. We find that firms that offer seniority-based pay are less likely to offer explicit incentives. They are also less likely to invest in monitoring devices. We also find that firms that offer seniority-based pay are more likely to engage in other human resource management policies that result in long employment relationships. Overall these results suggest that seniority-based pay is indeed used as a motivation device. |
| Subjects: | | human resource management practices incentives monitoring |
| JEL: | | M12 M52 J30 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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