Details
| Original language | English |
|---|---|
| Pages (from-to) | 221-232 |
| Number of pages | 12 |
| Journal | Japan and the world economy |
| Volume | 10 |
| Issue number | 2 |
| Publication status | Published - 1 Apr 1998 |
Abstract
Many compensation schemes consist of cash flow streams with different risk characteristics. For example, bonuses, which help align a firm's wage bill with business cycle fluctuations, are more variable than regular (fixed) pay. We investigate empirical regularities in compensation schemes involving risky pay which is contingent on certain random outcomes. Using data for Germany, Japan and the US, we find that the ratio of bonus pay to total pay increases as worker qualifications rise. This is consistent with another finding that the returns to human capital investment observed for bonus payments are larger than the returns observed for regular pay.
Keywords
- Bonuses, Compensation schemes, E32, Germany, J31, J33, Japan
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Finance
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Social Sciences(all)
- Political Science and International Relations
Cite this
- Standard
- Harvard
- Apa
- Vancouver
- BibTeX
- RIS
In: Japan and the world economy, Vol. 10, No. 2, 01.04.1998, p. 221-232.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - The bonus share of flexible pay in Germany, Japan and the US
T2 - Some empirical regularities
AU - Nakamura, Masao
AU - Hübler, Olaf
N1 - Funding Information: Research in part supported by the Social Sciences and Humanities Research Council of Canada. We thank an anonymous referee for helpful comments on an earlier version of the paper.
PY - 1998/4/1
Y1 - 1998/4/1
N2 - Many compensation schemes consist of cash flow streams with different risk characteristics. For example, bonuses, which help align a firm's wage bill with business cycle fluctuations, are more variable than regular (fixed) pay. We investigate empirical regularities in compensation schemes involving risky pay which is contingent on certain random outcomes. Using data for Germany, Japan and the US, we find that the ratio of bonus pay to total pay increases as worker qualifications rise. This is consistent with another finding that the returns to human capital investment observed for bonus payments are larger than the returns observed for regular pay.
AB - Many compensation schemes consist of cash flow streams with different risk characteristics. For example, bonuses, which help align a firm's wage bill with business cycle fluctuations, are more variable than regular (fixed) pay. We investigate empirical regularities in compensation schemes involving risky pay which is contingent on certain random outcomes. Using data for Germany, Japan and the US, we find that the ratio of bonus pay to total pay increases as worker qualifications rise. This is consistent with another finding that the returns to human capital investment observed for bonus payments are larger than the returns observed for regular pay.
KW - Bonuses
KW - Compensation schemes
KW - E32
KW - Germany
KW - J31
KW - J33
KW - Japan
UR - http://www.scopus.com/inward/record.url?scp=0040687438&partnerID=8YFLogxK
U2 - 10.1016/s0922-1425(97)00016-9
DO - 10.1016/s0922-1425(97)00016-9
M3 - Article
AN - SCOPUS:0040687438
VL - 10
SP - 221
EP - 232
JO - Japan and the world economy
JF - Japan and the world economy
SN - 0922-1425
IS - 2
ER -