%0 Report
        %A Bayo-Moriones, Alberto
%A Galdon-Sanchez, Jose Enrique
%A Güell, Maia
        %T Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data
        %D 2004
        %8 2004 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1321
        %U https://www.iza.org/publications/dp1321
        %X In this paper we use data from industrial plants to investigate if seniority-based pay is used
as a motivational device for production workers. Alternatively, seniority-based pay could
simply be a wage setting rule not necessarily related to the provision of incentives. Unlike
previous papers, we use a direct measure of seniority-based pay as well as measures of
monitoring devices and piece-rates. We find that firms that offer seniority-based pay are less
likely to offer explicit incentives. They are also less likely to invest in monitoring devices. We
also find that firms that offer seniority-based pay are more likely to engage in other human
resource management policies that result in long employment relationships. Overall these
results suggest that seniority-based pay is indeed used as a motivation device.
        %K monitoring
%K incentives
%K human resource management practices