Variable Payment Schemes and Industrial Relations

Evidence from Germany

authored by: John S. Heywood, Olaf Hübler, Uwe Jirjahn
Abstract: This paper examines the empirical determinants of piece rates and profit sharing schemes. Establishment data from Germany confirm the importance of industrial relations climate. The presence of collective agreements makes profit sharing less likely. Yet, the presence of works councils makes both piece rates and profit sharing more likely within the sector covered by collective agreements. The use of teams makes piece rates more likely within the uncovered sector. Additional hypotheses regarding expected tenure, production technology and firm strategy are confirmed. The results from Germany are explicitly compared with those from several other countries.
Organisation(s): Faculty of Economics and Management
External Organisation(s): University of Wisconsin Milwaukee
Type: Article
Journal: KYKLOS
Volume: 51
Pages: 237-257
No. of pages: 21
ISSN: 0023-5962
Publication date: 05.1998
Publication status: Published
Peer reviewed: Yes
ASJC Scopus subject areas: Arts and Humanities (miscellaneous), Economics and Econometrics
Sustainable Development Goals: SDG 13 - Climate Action
Electronic version(s): https://doi.org/10.1111/1467-6435.00047 (Access: Closed)