English, Article, Journal or magazine article edition: Firms' Choice of Method of Pay Charles Brown

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Bookmark: http://trove.nla.gov.au/version/140756
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Firms' Choice of Method of Pay
Author
  • Charles Brown
Physical Description
  • preprint
Notes
  • Three types of pay-setting methods are piece rates (pay mechanically linked to output), merit pay (pay based on less formal judgments by one's supervisor), and standard rates (pay based on one's job classification and perhaps seniority, but not directly on performance). Firms' choice among methods depends on balancing the gains from more precise links between performance and pay against the costs of either precise or judgmental measures of output. Using data from the BLS Industry Wage Study program, hypotheses suggested by this observation are tested and for the most part confirmed.
  • RePEc:nbr:nberwo:3065
Language
  • English
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