Valuing non-pecuniary instruments of human resource management

Abstract

This empirical study examines the degree to which non-pecuniary factors affect work incentives by monetizing their value. Although the literature has acknowledged the importance of non-pecuniary factors, the problem of measuring their effectiveness in influencing work incentives has persisted. Using survey data collected from employees, the analyses are intended to elicit aspects of work relations in the real labor market that are difficult to study using laboratory experiments. Our analyses underscore the importance of favorable non-pecuniary factors as affecting work incentives. The results of the analyses also reveal some patterns related to the relative importance of non-pecuniary factors across countries. Irrespective of the country, self-motivated devices have a greater impact on work effort than hospitality-based approaches do. In addition, employees in countries with higher GDP consider non-pecuniary factors more highly than employees in countries with lower GDP do.