Work Incentive and Productivity in Spain

Mabel Pisa and Rosario Sánchez Pérez

Prague Economic Papers, 2016, vol. 2016, issue 1, 99-111

Abstract: Work incentives are closely related to production performance. This paper presents evidence that the value added of a firm increases when relative labour wage rises, or the level of unemployment increases. Both circumstances imply evidence in favour of the efficiency wage model. This theory is consistent with the views of many managers and personal administrators, who tend to ascribe primary importance to wage setting as an incentive to increase effort. We use a micro panel data set of Spanish manufacturing firms for the period 2004-2009 to simultaneously estimate a stochastic frontier of a firm's value added and the inefficiency determinants. The data source is published in the Spanish Industrial Survey on Business Strategies (Encuesta sobre Estrategias Empresariales, ESEE) collected by the Fundación SEPI.

Keywords: value added; labour economic; industrial relations; efficiency (search for similar items in EconPapers)
JEL-codes: D24 J23 J24 L60 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://pep.vse.cz/doi/10.18267/j.pep.539.html (text/html)
http://pep.vse.cz/doi/10.18267/j.pep.539.pdf (application/pdf)
free of charge

Related works:
Working Paper: Work incentive and productivity in Spain (2013)
Working Paper: Work incentive and productivity in Spain (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpep:v:2016:y:2016:i:1:id:539:p:99-111

Ordering information: This journal article can be ordered from
Editorial office Prague Economic Papers, University of Economics, nám. W. Churchilla 4, 130 67 Praha 3, Czech Republic
http://pep.vse.cz

DOI: 10.18267/j.pep.539

Access Statistics for this article

Prague Economic Papers is currently edited by Klára Pavlová

More articles in Prague Economic Papers from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().