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  • Bonus and Salary IR Final Submission

    Rights statement: This is the peer reviewed version of the following article: Green, C. P. and Heywood, J. S. (2016), Don't Forget the Gravy! Are Bonuses Just Added on Top of Salaries?. Industrial Relations: A Journal of Economy and Society, 55: 490–513. doi: 10.1111/irel.12147 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/irel.12147/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

    Accepted author manuscript, 321 KB, PDF document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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Don't forget the gravy!: are bonuses and time rates complements?

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Don't forget the gravy! are bonuses and time rates complements? / Green, Colin; Heywood, John.
In: Industrial Relations, Vol. 55, No. 3, 07.2016, p. 490-513.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Green, C & Heywood, J 2016, 'Don't forget the gravy! are bonuses and time rates complements?', Industrial Relations, vol. 55, no. 3, pp. 490-513. https://doi.org/10.1111/irel.12147

APA

Green, C., & Heywood, J. (2016). Don't forget the gravy! are bonuses and time rates complements? Industrial Relations, 55(3), 490-513. https://doi.org/10.1111/irel.12147

Vancouver

Green C, Heywood J. Don't forget the gravy! are bonuses and time rates complements? Industrial Relations. 2016 Jul;55(3):490-513. Epub 2016 Jun 1. doi: 10.1111/irel.12147

Author

Green, Colin ; Heywood, John. / Don't forget the gravy! are bonuses and time rates complements?. In: Industrial Relations. 2016 ; Vol. 55, No. 3. pp. 490-513.

Bibtex

@article{919b413a45074f78bd90c463d1e04604,
title = "Don't forget the gravy!: are bonuses and time rates complements?",
abstract = "The press often depicts bonuses as extra payments to the already well compensated and calls for reform. Yet, these calls typically ignore the efficiency argument that bonuses are potentially risky performance pay that substitute for salary compensation. This paper uses representative UK data to estimate that bonuses appear not to substitute for salary in cross-sectional estimates. Yet, when controlling for time invariant characteristics in panel data, bonuses emerge as partial substitutes. Each pound of bonus comes at a cost of 40 pence inother earnings. The degree of substitution is far larger at the bottom of the earnings distribution and far smaller at the top of the earnings distribution where, indeed, bonuses look more like gravy. ",
keywords = "Bonus payments, Performance pay, Complements",
author = "Colin Green and John Heywood",
note = "This is the peer reviewed version of the following article: Green, C. P. and Heywood, J. S. (2016), Don't Forget the Gravy! Are Bonuses Just Added on Top of Salaries?. Industrial Relations: A Journal of Economy and Society, 55: 490–513. doi: 10.1111/irel.12147 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/irel.12147/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.",
year = "2016",
month = jul,
doi = "10.1111/irel.12147",
language = "English",
volume = "55",
pages = "490--513",
journal = "Industrial Relations",
issn = "1468-232X",
publisher = "Wiley-Blackwell",
number = "3",

}

RIS

TY - JOUR

T1 - Don't forget the gravy!

T2 - are bonuses and time rates complements?

AU - Green, Colin

AU - Heywood, John

N1 - This is the peer reviewed version of the following article: Green, C. P. and Heywood, J. S. (2016), Don't Forget the Gravy! Are Bonuses Just Added on Top of Salaries?. Industrial Relations: A Journal of Economy and Society, 55: 490–513. doi: 10.1111/irel.12147 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/irel.12147/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

PY - 2016/7

Y1 - 2016/7

N2 - The press often depicts bonuses as extra payments to the already well compensated and calls for reform. Yet, these calls typically ignore the efficiency argument that bonuses are potentially risky performance pay that substitute for salary compensation. This paper uses representative UK data to estimate that bonuses appear not to substitute for salary in cross-sectional estimates. Yet, when controlling for time invariant characteristics in panel data, bonuses emerge as partial substitutes. Each pound of bonus comes at a cost of 40 pence inother earnings. The degree of substitution is far larger at the bottom of the earnings distribution and far smaller at the top of the earnings distribution where, indeed, bonuses look more like gravy.

AB - The press often depicts bonuses as extra payments to the already well compensated and calls for reform. Yet, these calls typically ignore the efficiency argument that bonuses are potentially risky performance pay that substitute for salary compensation. This paper uses representative UK data to estimate that bonuses appear not to substitute for salary in cross-sectional estimates. Yet, when controlling for time invariant characteristics in panel data, bonuses emerge as partial substitutes. Each pound of bonus comes at a cost of 40 pence inother earnings. The degree of substitution is far larger at the bottom of the earnings distribution and far smaller at the top of the earnings distribution where, indeed, bonuses look more like gravy.

KW - Bonus payments

KW - Performance pay

KW - Complements

U2 - 10.1111/irel.12147

DO - 10.1111/irel.12147

M3 - Journal article

VL - 55

SP - 490

EP - 513

JO - Industrial Relations

JF - Industrial Relations

SN - 1468-232X

IS - 3

ER -