Pay Matters: The Piece Rate and Health in the Developing World

<p>Background</p><p>Piece rate pay remains a common form of compensation in developing-world industries. While the piece rate may boost productivity, it has been shown to have unintended consequences for occupational safety and health, including increased accident and injury risk.&...

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Autor principal:	Mary E. Davis
Formato:	article
Lenguaje:	EN
Publicado:	Ubiquity Press 2017
Materias:	emotional health occupational health performance pay physical health piece rate wages Infectious and parasitic diseases RC109-216 Public aspects of medicine RA1-1270
Acceso en línea:	https://doaj.org/article/dd69c4f33fa14a32968185ef5ec41806
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spelling	oai:doaj.org-article:dd69c4f33fa14a32968185ef5ec418062021-12-02T07:30:14ZPay Matters: The Piece Rate and Health in the Developing World2214-999610.1016/j.aogh.2016.05.005https://doaj.org/article/dd69c4f33fa14a32968185ef5ec418062017-03-01T00:00:00Zhttps://annalsofglobalhealth.org/articles/714https://doaj.org/toc/2214-9996<p>Background</p><p>Piece rate pay remains a common form of compensation in developing-world industries. While the piece rate may boost productivity, it has been shown to have unintended consequences for occupational safety and health, including increased accident and injury risk.</p><p>Objectives</p><p>This paper explores the relationship between worker pay and physical and emotional health, and questions the modern day business case for piece rate pay in the developing world.</p><p>Methods</p><p>The relationship between piece rate and self-reported measures of physical and emotional health is estimated using a large survey of garment workers in 109 Vietnamese factories between 2010 and 2014. A random effects logit model controls for factory and year, predicting worker health as a function of pay type, demographics, and factory characteristics.</p><p>Findings</p><p>Workers paid by the piece report worse physical and emotional health than workers paid by the hour (OR = 1.38-1.81). Wage incentives provide the most consistently significant evidence of all demographic and factory-level variables, including the factory’s own performance on occupational safety and health compliance measures.</p><p>Conclusions</p><p>These results highlight the importance of how workers are paid to understanding the variability in worker health outcomes. More research is needed to better understand the business case supporting the continued use of piece rate pay in the developing world.Mary E. DavisUbiquity Pressarticleemotional healthoccupational healthperformance payphysical healthpiece ratewagesInfectious and parasitic diseasesRC109-216Public aspects of medicineRA1-1270ENAnnals of Global Health, Vol 82, Iss 5, Pp 858-865 (2017)
institution	DOAJ
collection	DOAJ
language	EN
topic	emotional health occupational health performance pay physical health piece rate wages Infectious and parasitic diseases RC109-216 Public aspects of medicine RA1-1270
spellingShingle	emotional health occupational health performance pay physical health piece rate wages Infectious and parasitic diseases RC109-216 Public aspects of medicine RA1-1270 Mary E. Davis Pay Matters: The Piece Rate and Health in the Developing World
description	<p>Background</p><p>Piece rate pay remains a common form of compensation in developing-world industries. While the piece rate may boost productivity, it has been shown to have unintended consequences for occupational safety and health, including increased accident and injury risk.</p><p>Objectives</p><p>This paper explores the relationship between worker pay and physical and emotional health, and questions the modern day business case for piece rate pay in the developing world.</p><p>Methods</p><p>The relationship between piece rate and self-reported measures of physical and emotional health is estimated using a large survey of garment workers in 109 Vietnamese factories between 2010 and 2014. A random effects logit model controls for factory and year, predicting worker health as a function of pay type, demographics, and factory characteristics.</p><p>Findings</p><p>Workers paid by the piece report worse physical and emotional health than workers paid by the hour (OR = 1.38-1.81). Wage incentives provide the most consistently significant evidence of all demographic and factory-level variables, including the factory’s own performance on occupational safety and health compliance measures.</p><p>Conclusions</p><p>These results highlight the importance of how workers are paid to understanding the variability in worker health outcomes. More research is needed to better understand the business case supporting the continued use of piece rate pay in the developing world.
format	article
author	Mary E. Davis
author_facet	Mary E. Davis
author_sort	Mary E. Davis
title	Pay Matters: The Piece Rate and Health in the Developing World
title_short	Pay Matters: The Piece Rate and Health in the Developing World
title_full	Pay Matters: The Piece Rate and Health in the Developing World
title_fullStr	Pay Matters: The Piece Rate and Health in the Developing World
title_full_unstemmed	Pay Matters: The Piece Rate and Health in the Developing World
title_sort	pay matters: the piece rate and health in the developing world
publisher	Ubiquity Press
publishDate	2017
url	https://doaj.org/article/dd69c4f33fa14a32968185ef5ec41806
work_keys_str_mv	AT maryedavis paymattersthepiecerateandhealthinthedevelopingworld
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Pay Matters: The Piece Rate and Health in the Developing World

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