Is seniority-based pay used as a motivational device? Evidence from plant-level data

Alberto Bayo-Moriones, Jose E. Galdon-Sanchez and Maia Güell

A chapter in Jobs, Training, and Worker Well-being, 2010, pp 155-187 from Emerald Group Publishing Limited

Abstract: In this chapter we use data from industrial plants to find out whether seniority-based pay is used as a motivational device for production workers. Alternatively, seniority-based pay could simply be a wage-setting rule independent of incentives. Unlike previous papers, we use a direct measure of seniority-based pay as well as measures of monitoring devices and explicit incentives. We find that those firms that base their wages partly on seniority are less likely to offer explicit incentives. They are also less likely to invest in monitoring devices. We also discover that these companies are more likely to engage in other human resource management policies, which result in long employment relationships. Overall these results suggest that seniority-based pay is indeed used as a motivational device.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 9121(2010)0000030008
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
Working Paper: Is Seniority-Based Pay used as a Motivation Device? Evidence from Plant Level Data (2015)
Working Paper: Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data (2004)
Working Paper: Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data (2004)
Working Paper: Is seniority-based pay used as a motivation device? Evidence from plant level data (2004)
Working Paper: Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data (2004)
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:eme:rleczz:s0147-9121(2010)0000030008

DOI: 10.1108/S0147-9121(2010)0000030008

Access Statistics for this chapter

More chapters in Research in Labor Economics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().