NDLI: Incentive pay and the wage structure of firms: Evidence from a panel of Dutch firms

Please wait, while we are loading the content...

Incentive pay and the wage structure of firms: Evidence from a panel of Dutch firms

Content Provider	Semantic Scholar
Author	Borghans, Lex Kriechel, Ben
Copyright Year	2006
Abstract	Does incentive pay affect the wage structure of firms? Does the way individual productivity is measured matter for such effects? The aim of this paper is to analyze the wage structure of Dutch firms to answer these questions about the relation of wage structure and incentive pay. We use biennial data covering the period 1993-2001 from a panel of 3,000 Dutch establishments with detailed information about the wage structure of the establishment, background characteristics, along with the wage policy of the firm. It is the first representative study about the wage structure of firms in the Netherlands. In the cross-section firms using subjective evaluations to determine incentive pay, we find on average 4% higher wages with a 20% higher variance. Panel estimates of the effect of incentive pay on the wage distribution, using fixed establishment effects, reveal that changes in the variance of the distribution similar to the cross-sectional results, indicating that the incentive scheme fully accounts for these differences between firms. It takes about three years before this increase in variance is realized. The introduction of incentive schemes based on subjective evaluations increases the average wage by 1.6%. We find no effects for incentive schemes based on objective standards, no effect for the skewness and only a short run effect for the kurtosis of the wage distribution. Incentive pay based on objective standards is related to a higher job turnover, while workers in firms with subjective evaluations tend to stay longer in their firm.
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://doku.iab.de/veranstaltungen/2006/CAFE_2006_O1_Borghans.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article

Central Library (ISO-9001:2015 Certified)
Indian Institute of Technology Kharagpur
Kharagpur, West Bengal, India | PIN - 721302

See location in the Map
03222 282435
Mail: support@ndl.gov.in

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in