Using data from large-scale establishment surveys in Britain and France, we show that incentive pay for non-managers is more widespread in France than in Britain. We explain this finding in terms of the `beneficial constraint? arising from stronger employment protection in France, which provides an impulse to develop incentive pay; employer networking activities in France, which facilitate joint learning about its development and operation; and government fiscal incentives for profit-sharing, which reduces the cost of its operation.

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July 2009     Paper Number CEPDP0941

Download PDF - Institutions and the Management of Human Resources: Incentive Pay Systems in France and Great Britain

This CEP discussion paper is published under the centre's Labour programme.