Purpose: The purpose of this paper is to provide novel and rigorous evidence on the productivity effect of varying attributes of performance-related pay (PRP) and shows that the details of PRP indeed matter. Design/methodology/approach: In doing so, the authors exploit the panel nature of the...

The aim of this paper is to examine rent sharing under a heterogeneous workforce using Finnish linked employer‐employee data in 1987‐1998. Rent sharing is one component of the empirically estimated firm‐effect and depends on the sensitivity of firm‐level payments to quasi‐rents. It is...

By using weekly records on efficiency for four production lines in a Finnish food-processing plant during the period 1999–2005, the authors investigate the effects on production line performance once changes in Human Resource Management (HRM) practices were instituted. Using time-series...

We study the impact of performance-related pay (PRP) on gender wage differences using Finnish-linked employer--employee panel data. Controlling for unobserved person and firm effects, we find that bonuses increase women's earnings slightly less than men's, but the economic significance of the...

This article examines the effect of innovative work practices on the prevalence of sickness absence and accidents at work. We focus on the "bundles" of workplace innovations that consist of self-managed teams, information sharing, employer-provided training, and incentive pay. We use nationally...

This paper studies productivity dispersion in a retail chain. We find that productivity is highly dispersed between the branches. Furthermore, productivity rankings are quite persistent. Accounting for employee skills and human resource management decreases the productivity dispersion only...

We analyze how features of performance-related pay (PRP) schemes affect their perceived motivational effects using a Finnish survey for upper white-collar employees from 1999. The results show that the following features are important for a successful PRP scheme: (i) the employees have to feel...

Using new panel data for Finnish co-operative banks we study the impact of training on wages and performance. To our knowledge, this is the first paper to compare explicitly the effects of general and firm-specific workplace training on outcomes for both employees and firms. Unlike much existing...