Publication type
Journal Article
Authors
Publication date
June 1, 2016
Summary:
We show that worker wellbeing is determined not only by the amount of compensation workers receive but also by how compensation is determined. While previous theoretical and empirical work has often been preoccupied with individual performance-related pay, we find that the receipt of a range of group-performance schemes (profit shares, group bonuses and share ownership) is associated with higher job satisfaction. This holds conditional on wage levels, so that pay methods are associated with greater job satisfaction in addition to that coming from higher wages. We use a variety of methods to control for unobserved individual and job-specific characteristics. We suggest that half of the share-capitalism effect is accounted for by employees reciprocating for the “gift”; we also show that share capitalism helps dampen the negative wellbeing effects of what we typically think of as “bad” aspects of job quality.
Published in
Labour Economics
Volume and page numbers
Volume: 42 , p.151 -158
DOI
http://dx.doi.org/10.1016/j.labeco.2016.09.002
ISSN
9275371
Subjects
Notes
Open Access
Open Access funded by Economic and Social Research Council
Under a Creative Commons license
#524552