Wage Structure and the Incentive Effect of Promotions

Arbeitspapier

This paper studies wage structure characteristics and their incentive effects within one firm. Based on personnel records and an employee survey, we provide evidence that wages are attached to jobs and that promotions play a dominant role as a wage determinant. We furthermore show that a promotion affects both intrinsic and extrinsic motivation significantly, though in two different ways: An expected promotion increases extrinsic motivation whereas intrinsic motivation is highest subsequent to a realized promotion. The relationship between extrinsic motivation and expected promotions implies that promotions have a clear incentive effect, consistent with a key – not yet tested – prediction of the tournament model.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Tinbergen Institute Discussion Paper ; No. 04-107/3

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Contracts ; Compensation Packages; Payment Methods ; Personnel Economics: Firm Employment Decisions; Promotions ; Personnel Economics: Compensation and Compensation Methods and Their Effects
• Thema: promotions ; incentives ; tournament model ; internal labor market ; extrinsic motivation ; intrinsic motivation ; Lohnstruktur ; Leistungsanreiz ; Leistungsentgelt ; Leistungsmotivation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): van Herpen, Marco ; Cools, Kees ; van Praag, Mirjam
• Ereignis: Veröffentlichung
• (wer): Tinbergen Institute
• (wo): Amsterdam and Rotterdam
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/86329
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ