"Salaries and Piece Rates
." Journal of Business, Vol.
This firm paid its planters piece rates
exclusively, and planters received no base wage.
Notice that requiring workers to perform complete tasks is negatively related to the use of piece rates
. This may suggest that individuals on straight wages are more [TABULAR DATA FOR TABLE 2 OMITTED] likely to be assigned specific tasks, with target completion dates, this is consistent with our view that a worker is paid a fixed hourly wage but does not imply a lack of incentive pay Rather, the worker is paid for the time spent on the job, where he or she is required to achieve a satisfactory level of performance.
Next, differential piece rates
would be established so that workers would receive a substantial pay increase if they met management's output targets; furthermore, there would be a strict ban on rolling back piece rates
after they had been set "scientifically."
If employers succeeded in reducing piece rates
, spinners would have had to work harder to maintain their standard level of earnings.
When controlling for matching, we find strong evidence that high risk-averse workers choose hourly rates and low risk-averse workers choose piece rates
. We also found that high ability types choose piece rates
and low ability types choose hourly rates but the evidence is weaker.
Work pressure is extremely high, with single workers attending to 4/5 machines in 12 hour shifts, and low piece rates
in cutting and stitching, force workers to work for long hours to earn the minimum wages.
In any case, after the manufacturer made the difficult and contentious switch from piece rates
to time rates, they did, in fact, find that productivity fell.
Most suburban clothiers responded to the expanding pool of underemployed labor by attempting to control its supply, rather than seizing the temporary benefits of its downward pressure on journeymen's piece rates
. In the 1800s, for example, Armley clothiers publicly agreed to employ Armley workers in preference to outsiders.(26) Although based on individual self-interest as ratepayers, this was an effort to find a communal solution to the problems posed by capitalist competition.
The 1890 survey apparently refers only to piece-rate systems, while piece rates
play a lesser role in the 1958 survey, where premium and bonus systems predominate.
In the fourth chapter, Uwe Jirjahn and Gesine Stephan, using matched employer-employee data from Germany, show that payment systems based on piece rates
(i.e., fixed rates paid to employees for each unit of output produced) tend to increase the wages of women relative to those of men, closing the gender pay gap, and that such systems are more commonly used in relatively competitive markets, particularly those with large export shares.
With regard to the effect of monetary incentives, our hypothesis is that piece rates
increase average performance, because students care about monetary income and have an incentive to increase effort as long as the monetary benefit of Yuan 1 exceeds the marginal cost of completing another survey.