Piece-rate payment schemes and the employment of women : the case of Hong Kong

Past studies confirm unanimously that establishments with high shares of women workers are more likely to adopt piece-rate schemes. This result follows the presumption that women are poorly motivated by deferred compensation because of their shorter expected tenure. An original survey of establishments provides the first test of the determinants of piece rates in Hong Kong. Unique survey questions identify the presence of deferred compensation for which the share of women was presumably a proxy. Despite these controls and their significance, the share of women fully retains its role. We suggest alternatives to the received theory supporting the association between women and piece rates.