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Title: The rise and fall of piecework–timework wage differentials: market volatility, labor heterogeneity, and output pricing
Author(s): Hart, Robert A
Roberts, J Elizabeth
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Citation: Hart RA & Roberts JE (2013) The rise and fall of piecework–timework wage differentials: market volatility, labor heterogeneity, and output pricing. Stirling Economics Discussion Paper, 2013-12.
Keywords: Piecework – timework hourly pay differentials
output fluctuations
labor heterogeneity
output pricing
JEL Code(s): E32: Business Fluctuations; Cycles
J31: Wage Level and Structure; Wage Differentials
J33: Compensation Packages; Payment Methods
N64: Economic History: Manufacturing and Construction: Europe: 1913-
Issue Date: 30-Nov-2013
Date Deposited: 7-Nov-2013
Series/Report no.: Stirling Economics Discussion Paper, 2013-12
Abstract: Based on detailed payroll data of blue collar male and female labor in Britain's engineering and metal working industrial sectors between the mid-1920s and mid-1960s, we provide empirical evidence in respect of several central themes in the piecework-timework wage literature. The period covers part of the heyday of pieceworking as well as the start of its post-war decline. We show the importance of relative piece rate flexibility during the Great Depression as well as during the build up to WWII and during the war itself. We account for the very significant decline in the differentials after the war. Labor market topics include piecework pay in respect of compensating differentials, labor heterogeneity, and the transaction costs of pricing piecework output.
Type: Working Paper
Affiliation: Economics

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