Purpose The purpose of this paper is to analyze the link between flexible pay systems (FPS) and labor productivity, also looking at which factors drive firms to adopt such wage schemes. Design/methodology/approach The analysis is conducted on an original sample extracted from a firm-level survey...

We estimate the effect of variable pay schemes on workplace absenteeism using two cross sections of British establishments. Private sector establishments that explicitly link pay with individual performance are found to have significantly lower absence rates. This effect is stronger for...

Employees exposed to high involvement management (HIM) practices have higher subjective wellbeing, fewer accidents but more short absence spells than "like" employees not exposed to HIM. These results are robust to extensive work, wage and sickness absence history controls. We present a model...