This paper explores performance measurement in incentive plans. Based on theory, we argue that differences in the nature of jobs between blue- and white-collar employees lead to differences in incentive systems. We find that performance measurement for white-collar workers is broader in terms of...

The paper examines the effect of innovative work practices on the prevalence of sickness absence and accidents at work. We focus on several different aspects of workplace innovations (self-managed teams, information sharing, employer-provided training and incentive pay) along with the 'bundles'...

We examine gender differences in careers using a large linked employer-employee dataset on Finnish white-collar manufacturing workers over the period of 1981-2006. Our focus is on labour market entrants whom we follow over time. We find that men start their careers from higher ranks of the...

By using new panel data for Finnish banks we study the impact of training on wages and performance. To the best of our knowledge, ours 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...

We study career and wage dynamics within and between firms using a large linked employer-employee panel dataset spanning 26 years. We construct six-level hierarchies for more than 5,000 firms. We replicate most of the analyses from Baker, Gibbs and Holmström (Quarterly Journal of Economics,...

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 paper studies a retail chain that introduced a sales incentive plan that rewarded for exceeding a sales target and subsequently cut the incentive intensity in addition to increasing the target. Utilizing monthly panel data for 54 months for all 53 units of the chain the paper shows that the...

The aim of this paper is to examine rent sharing under a heterogeneous workforce using linked employer-employee Finnish data in 1987-1998 located in Statistics Finland. It is shown that rent sharing moderates firm-level wages and that the highly educated workers are the main targets. In...

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

The aim of this paper is to examine profit sharing using Finnish linked employer-employee data in 1996-2000. The use of profit sharing is predicted by the share of the highly educated, R&D and capital intensity, business risk, firm size and the desire to have some stability in the skilled...