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Institutions and the management of human resources: incentive pay systems in France and Great Britain

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  • Marsden, David
  • Belfield, Richard

Abstract

Using data from large-scale establishment surveys in Britain and France, we show that incentive pay for non-managers is more widespread in France than in Britain. We explain this finding in terms of the ‘beneficial constraint’ arising from stronger employment protection in France, which provides an impulse to develop incentive pay; employer networking activities in France, which facilitate joint learning about its development and operation; and government fiscal incentives for profit-sharing, which reduces the cost of its operation.

Suggested Citation

  • Marsden, David & Belfield, Richard, 2009. "Institutions and the management of human resources: incentive pay systems in France and Great Britain," LSE Research Online Documents on Economics 25423, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:25423
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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