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Who Works for Piece Rates and Why

D. Kate Rubin and Jeffrey Perloff

American Journal of Agricultural Economics, 1993, vol. 75, issue 4, 1036-1043

Abstract: The decision whether to work on a piece-rate or time-rate agricultural job depends on workers' preferences for earnings and nonpecuniary attributes of jobs. These preferences differ geographically and with workers' demographic characteristics, particularly age. Based on estimates that control for sample selectivity, nonpecuniary effects of age dominate earnings effect in most age groups. A substantial share of prime-age workers do not choose to work in the more lucrative piece-rate jobs. Indeed, all else the same, prime-age workers are the least likely among all age groups to work piece rate.

Date: 1993
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