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Piece Rates and Workplace Injury: Does Survey Evidence Support Adam Smith?

Bender, K A and Green, C and Heywood, J S (2010) Piece Rates and Workplace Injury: Does Survey Evidence Support Adam Smith? Working Paper. The Department of Economics, Lancaster University.

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    Abstract

    While piece rates are routinely associated with greater productivity and higher wages, they may also generate unanticipated effects. This paper uses cross-country European data to provide among the first broad survey evidence of a strong link between piece rates and workplace injury. Despite unusually good controls for workplace hazards, job characteristics and worker effort, workers on piece rates suffer a large 5 percentage point greater likelihood of injury. As injury rates are typically not controlled for when estimating the premium to piece rates, this raises the specter that a portion of the return to piece rates reflects a compensating wage differential for risk of injury.

    Item Type: Monograph (Working Paper)
    Subjects: UNSPECIFIED
    Departments: Lancaster University Management School > Economics
    ID Code: 49001
    Deposited By: ep_importer_pure
    Deposited On: 11 Jul 2011 22:27
    Refereed?: No
    Published?: Published
    Last Modified: 27 Jul 2012 01:20
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/49001

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