Seniority-based pay: is it used as a motivation device?

Alberto Bayo-Moriones

No 103, Working Papers from Departament Empresa, Universitat Autònoma de Barcelona

Abstract: The purpose of this article is to explain what factors determine the use of seniority-based pay for production workers in Spanish manufacturing industry. The data used in order to achieve these objectives was taken from 774 Spanish industrial plants. The estimation of several ordered probit models enabled us to see that in firms where it was more costly for management to engage in opportunistic behaviour, deferred payment shows a negative relation to the use of devices, like monitoring or incentive payment, designed to align workers’ objectives with those of the company.

Keywords: seniority-based pay; delayed payment; manual workers; Spanish manufacturing firm. (search for similar items in EconPapers)
JEL-codes: J31 J33 M12 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2001-05, Revised 2001-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Working Papers at the Department of Business, May 2001 pages 1-29

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