Is Seniority-Based Pay Used as a Motivation Device? : Evidence from Plant Level Data

Please use this identifier to cite or link to this item: http://dspace.mediu.edu.my:8181/xmlui/handle/10419/20589

Title:	Is Seniority-Based Pay Used as a Motivation Device? : Evidence from Plant Level Data
Keywords:	M12 M52 J30 ddc:330 human resource management practices incentives monitoring Senioritätsentlohnung Leistungsanreiz Ökonomischer Anreiz Schätzung Verarbeitendes Gewerbe Spanien
Issue Date:	16-Oct-2013
Description:	In this paper we use data from industrial plants to investigate if seniority-based pay is used as a motivational device for production workers. Alternatively, seniority-based pay could simply be a wage setting rule not necessarily related to the provision of incentives. Unlike previous papers, we use a direct measure of seniority-based pay as well as measures of monitoring devices and piece-rates. We find that firms that offer seniority-based pay are less likely to offer explicit incentives. They are also less likely to invest in monitoring devices. We also find that firms that offer seniority-based pay are more likely to engage in other human resource management policies that result in long employment relationships. Overall these results suggest that seniority-based pay is indeed used as a motivation device.
URI:	http://koha.mediu.edu.my:8181/xmlui/handle/10419/20589
Other Identifiers:	http://hdl.handle.net/10419/20589 ppn:472767305
Appears in Collections:	EconStor

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