Corpus ID: 53547126

Discussion Paper Series The Effect of Wage Subsidies on Piece Rate Workers : Evidence from the Penny Per Pound Program in Florida Hyejin Ku

@inproceedings{Ku2018DiscussionPS,
  title={Discussion Paper Series The Effect of Wage Subsidies on Piece Rate Workers : Evidence from the Penny Per Pound Program in Florida Hyejin Ku},
  author={Hyejin Ku and CPD},
  year={2018}
}
  • Hyejin Ku, CPD
  • Published 2018
  • This paper studies a fair trade program in which consumers provide a wage subsidy (bonus) to piece-rate tomato pickers. The total subsidy—determined by sales to participating buyers—is divided among workers based on their relative output: a worker who produces more gets a larger share of the bonus. Although seemingly mimicking the existing piece-rate pay scheme, the mechanism associated with the bonus payment is really a relative performance evaluation, as the size of total bonus is exogenous… CONTINUE READING

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