Using panel data from German establishments, this study finds that performance pay is associated with increased productivity only when it is coupled with a high-wage policy. This holds for individual-based performance pay, group-based performance pay and profit sharing.

We present a model in which workers with greater ability and greater risk tolerance move into performance pay jobs to capture rents and contrast it with the classic agency model. Estimates from the German Socio-Economic Panel confirm testable implications drawn from our model. First, before...

Using data on a sample of manufacturing establishments in Germany, we find that the use of self-managed teams is associated with increased intra-firm wage inequality between skilled and unskilled blue-collar workers. We also show that moderating factors play an important role. While teamwork...

This research uses German establishment data to examine the relationship between back loading compensation, the hiring of older workers and their part time status. We confirm that establishments that defer compensation are less likely to hire older workers. We demonstrate for the first time that...

Using German establishment data, this study provides the first econometric analysis on the interaction of establishment-level codetermination and foreign owners. Works councils are associated with higher productivity in domestic-owned establishments while they are associated with lower...

"Against the background of theoretical considerations and available empirical studies, the expected effects of the amendment to the Law on Labour Relations at the Workplace (Betriebsverfassungsgesetz) are discussed. The various basic conditions are shown under which more positive or more...

"On the basis of establishment data for the manufacturing industry in Lower Saxony this article combines two research approaches which have so far been dealt with separately to a large extent in specialist literature. These are the influence of technological progress on the one hand and of...

"The article explores the question of how the German wage agreement system influences the works councils’ effects on company efficiency and on the company wage level. On the one hand, an overview of the existing theoretical and empirical research is provided. On the other hand, new empirical...