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Work incentive and productivity in Spain

Rosario Sánchez Pérez and Isabel Pisa Mª

No 5668, EcoMod2013 from EcoMod

Abstract: Work incentives are closely related with production performance. This paper presents evidence that firm level value added increases when the relative labour cost rises, or the level of unemployment increases. Both facts imply evidence in favour of the efficiency wage model. This theory is consistent with the views of many managers and personal administrator, who tend to ascribe primary importance in wage setting to incentive effort. We use a micro panel data set of Spanish manufacturing firms, during the period 2004–2009, to simultaneously estimate a stochastic frontier of 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 Empresa Pública (FEP). See above See above

Keywords: Spain; Impact and scenario analysis; Impact and scenario analysis (search for similar items in EconPapers)
Date: 2013-06-21
New Economics Papers: this item is included in nep-eff and nep-hrm
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Journal Article: Work Incentive and Productivity in Spain (2016) Downloads
Working Paper: Work incentive and productivity in Spain (2013) Downloads
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