Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction

Using an econometric procedure that corrects for both self-selection of individuals into their preferred compensation scheme and wage endogeneity, this study investigates whether significant differences exist in the job satisfaction of individuals receiving performance- related pay (PRP) compared to those on alternative compensation plans. Using data from four waves of the British Household Panel Survey (BHPS), it is found that PRP exerts a positive effect on the mean job satisfaction of (very) high-paid workers only. A potential explanation for this pattern could be that for lower-paid employees PRP is perceived to be controlling, whereas higher-paid workers derive a utility benefit from what they regard as supportive reward schemes. Using PRP as an incentive device in the UK could therefore be counterproductive in the long run for certain low-paid occupations.Performance-related pay, job satisfaction, self-selection

Exchange rate hysteresis from trade account interaction

SIGLEAvailable from British Library Document Supply Centre-DSC:DXN003711 / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Training and hysteresis effects on the wage inflation-unemployment relationship

This paper develops a model that shows how training costs incurred by firms alters the relationship between wage inflation and unemployment. During an upswing, firms will take on and train new workers. These workers are, however, not shed during a following downswing. This is due to the lump sum training cost forcing a wedge between the level of demand that triggers a firm to begin training new workers and that triggers them to shed trained workers. This has important policy implications as it gives a renewed role to demand-side policy in enhancing labor market flexibility, while reinforcing the value of supply-side incentives to train and educate workers.human capital, hysteresis, training, unemployment, wage inflation,

Short-terminism and the dangers of prior announcement of policy when there is hysteresis in trade and competitiveness

SIGLEAvailable from British Library Document Supply Centre-DSC:3597.6628(AU-DE-DP--96-06) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Exchange rate hysteresis The effects of overshooting and short-termism

SIGLEAvailable from British Library Document Supply Centre- DSC:3597.6628(AU-DE-DP--95-11) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Regional Earnings Inequality in Great Britain: A Decomposition Analysis

This paper investigates the degree of earnings inequality in Great Britain over the period 1975-96 using individual-based data. It finds that the contribution of within-group inequality to both earnings inequality cross-sectionally and to its trend over time is substantially more important than the contribution of between-group inequality. Thus, the primary source of increasing inequality in the overall earnings distribution is increasing inequality within regions and not differences in average earnings between regions. A decomposition of the Gini coefficient is also adopted to illustrate how regional convergence in average earnings has been accompanied by increasing overall earnings inequality in the UK. A partir des données auprès des particuliers, cet article cherche à examiner l'importance de l'inégalité des revenus régionaux en Grande-Bretagne de 1975 à 1996. Il en résulte que la contribution de l'inégalité à l'intérieur du groupe à l'inégalité des revenus par échantillon et sur le temps s'avère nettement plus importante que ne l'est l'inégalité entre groupes. Ainsi, la source primordiale de la croissance de l'inégalité de la distribution globale des revenus est l'accroissement de l'inégalité intrarégionale et non pas l'écart des revenus moyens interrégionaux. On se sert aussi du coefficient Gini désagrégé afin de démontrer comment la convergence régionale des revenus moyens se fait conjointement avec une hausse globale de l'inégalité des revenus au Royaume-Uni. Dieser Aufsatz untersucht das Ausmaß der Unterschiede von Einkommen in Großbritannien im Zeitraum 1975-1996, wobei er sich auf Daten von individuellen Fällen stützt. Der Befund zeigt, daß der Beitrag der Unterschiede innerhalb einer Gruppe sowohl im Querschnitt als auch zu ihrer langfristigen Tendenz zum Einkommensunterschied weitaus bedeutender ist als der Beitrag zu Unterschieden zwischen verschiedenen Gruppen. Die Hauptquelle zunehmender Unterschiede in der allgemeinen Einkommensverteilung ist daher die zunehmende Ungleichheit der Regionen, und nicht die Unterschiede in durchschnittlichen Einkommen zwischen einzelnen Regionen. Eine Zerlegung des Gini Koeffizienten wird auch dazu benutzt, aufzuzeigen, wie regionale Konvergenz bei durchschnittlichen Einkommen mit zunehmenden allgemeinen Einkommensunterschieden im UK einhergeht.Regional Convergence Increasing Earnings Inequality Within-GROUP Inequality,