Piece rate and wage rate employment in Nova Scotian apple farms
LE3 .A278 2023
2023
Wang, Xiao
Acadia University
Bachelor of Science
Honours
Economics
The question of offering piece rate or wage rate compensation is an important choice for any firm, especially farms. We apply this question to Nova Scotian Apple farms by building upon the rich literature of labour market compensation schemes and multidimensional product differentiation. And seek to investigate the impact locational differentiation has on farmers’ choice between piece rate and wage rate harvest worker compensation, by applying a game theoretic approach. In a model with workers’ productivity being the hidden information, we find that farms that have a high level of locational differentiation will have the same compensation method, namely, piece rates, with the same holding for medium levels of locational differentiation. For low levels of differentiation, piece rate and wage rate compensation methods can co-exist.
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https://scholar.acadiau.ca/islandora/object/theses:3968
