This chapter provides further evidence on the role of uncertainty and job complexity in pay-for-performance and autonomy decisions. It proposes an encompassing econometric approach in order to explain the differences in previous outcomes that may be due to differing methodological approaches. The main stylized fact is that autonomy and pay-for-performance are positively associated. Additionally, autonomy is positively related to job complexity and uncertainty suggesting that the relationship between these latter variables and pay-for-performance could be through autonomy. After controlling for autonomy, the positive relationship between pay-for-performance and job complexity disappears, while that between pay-for-performance and uncertainty becomes more negative.
The authors acknowledge financial support from the Spanish Ministry of Education, ECO 2010-21393-C04-01. We are grateful to Avner Ben-Ner, Vicente Salas-Fumás, and two anonymous referees for their helpful comments and to a number of participants at various conferences and workshops.
Barrenechea-Méndez, M.A., Ortín-Ángel, P. and Rodes-Mayor, E.C. (2014), "Autonomy and Pay-for-Performance in Spanish Industrial Plants", International Perspectives on Participation (Advances in the Economic Analysis of Participatory & Labor-Managed Firms, Vol. 15), Emerald Group Publishing Limited, Bingley, pp. 151-183. https://doi.org/10.1108/S0885-333920140000015014
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