Piece Work Pay and Hourly Pay Over the Cycle

32 Pages Posted: 31 Jul 2006

See all articles by Robert A. Hart

Robert A. Hart

University of Stirling - Department of Economics; Institute for the Study of Labor (IZA)

Date Written: July 2006

Abstract

This paper investigates the relative cyclical behavior of the pay of piece workers and hourly paid workers. It uses a unique data set of blue-collar workers in British engineering between 1926 and 1966. The statistics are obtained from the payrolls of firms belonging to the Engineering Employers Federation (EEF). Roughly, the EEF accounted for one-third of the total engineering workforce. The data consist of cell averages delineated by 15 occupations in 29 engineering districts. Via a firm-union bargaining modelling structure, the question is examined as to likely earnings responses to price shocks under the two payment systems. The empirical work entails testing for cyclical differences in the two payments methods Insights are gained from distinguishing between the relatively tight post-war and slack prewar labor markets.

Keywords: piece work pay, hourly pay, business cycle

JEL Classification: E32, J31, J33

Suggested Citation

Hart, Robert A., Piece Work Pay and Hourly Pay Over the Cycle (July 2006). IZA Discussion Paper No. 2210, Available at SSRN: https://ssrn.com/abstract=921044 or http://dx.doi.org/10.2139/ssrn.921044

Robert A. Hart (Contact Author)

University of Stirling - Department of Economics ( email )

Stirling, Scotland FK9 4LA
United Kingdom
+44 1786 467 471 (Phone)
+44 1786 467 469 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
81
Abstract Views
1,617
Rank
547,434
PlumX Metrics