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Article in Journal ()

Piece Work Pay and Hourly Pay over the Cycle

Hart RA (2008) Piece Work Pay and Hourly Pay over the Cycle, Labour Economics, 15 (5), pp. 1006-1022.

This paper investigates the relative cyclical behavior of the pay of piece workers and hourly paid workers. It uses a unique data set of blue-collar workers in British engineering between 1926 and 1966. The statistics are obtained from the payrolls of firms belonging to the Engineering Employers Federation (EEF). Roughly, the EEF accounted for one-third of the total engineering workforce. The data consist of cell averages delineated by 15 occupations in 29 engineering districts. Via a firm-union bargaining modelling structure, the question is examined as to likely earnings responses to price shocks under the two payment systems. The empirical work entails testing for cyclical differences in the two payments methods Insights are gained from distinguishing between the relatively tight post-war and slack pre-war labor markets.

Piece work pay; Hourly pay; Business cycle

Subject headings
Blue collar workers Great Britain.; Piecework Great Britain; Engineers Great Britain

AuthorsHart Robert A
Publication date10/2008
Publication date online15/08/2007
Date accepted by journal02/08/2007
ISSN 0927-5371

Labour Economics: Volume 15, Issue 5 (2008-10)

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