Determinants of the Incidence of Group Incentives: Evidence from Canada

Derek Jones and Jeffrey Pliskin

Canadian Journal of Economics, 1997, vol. 30, issue 4, 1027-45

Abstract: The authors use Canadian data on four group incentive schemes to examine the determinants of the probability that a firm offers each scheme to its nonmanagerial workers and to production workers alone. They find that unionization lowers the incidence of group incentives, except for productivity gainsharing. Larger firms are more likely to offer share purchase plans to all nonmanagerial employees and profit sharing to production workers; cash bonuses are less common in larger firms. The authors find little indication that group incentives are either discouraged by machine-paced production or more common in firms with good industrial relations.

Date: 1997
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