Work Incentives Research Articles

The Effect of Earnings-Related Benefits on Financial Work Incentives

The Effect of Earnings-Related Benefits on Financial Work Incentives

‘You can see when your parents are struggling’: a qualitative study of children and young people’s views of Universal Credit

Abstract By 2025, over eight million UK households will be receiving Universal Credit (UC). Introduced in 2013 to simplify the benefit system and improve work incentives for working age adults, UC has been criticised for causing hardship and exacerbating inequalities. There is limited research on children and young people’s (CYP) views of UC, as well as its health and social impacts. In this pilot qualitative study, creative methods were used to understand the views of UC among CYP (n = 40) aged 12–16 years in North East England. Findings showed diverse and nuanced understanding of UC as well as contested views about conditionality, sanctions, lower UC rates for under-25s and the two-child limit alongside recognition of the stigma and shame associated with benefits. While CYP value paid employment, they stressed the importance of minimum income standards and tailored employment support for UC claimants, taking account of their personal, health and family circumstances. Findings suggest CYP are aware when parents and carers are struggling financially and may try to ease pressures on parents. Debates about principles of equality, fairness, social justice and deservingness were present in young people’s accounts. We conclude by exploring future directions for a CYP-centred approach to social policy.

Offering security or incentives: The relationship among sector type, organizational support, and turnover intentions of social workers in China

Abstract High turnover rates are a global issue, prompting discussions on stabilizing social work employment, especially in China, where the Ministry of Social Work is being established. This study examined the relationship between the support received by social workers and their intention to leave under these two modes of employment, public-sector employment and third-sector employment. The research sample consisted of 6,776 social workers from the 2019 China Longitudinal Study of Social Work. Multiple regression techniques and mediation analysis were used to analyse the data. Our findings indicate that agency social workers employed in the public sector had lower turnover intentions, whereas those employed in the third sector were less stable. Social workers employed in the public sector might receive more support from social networks and social security benefits, which reduces turnover intentions under the influence of social reputation and career stability. In contrast, social workers employed in the public sector possess lower work incentives and autonomy, and their lack of collective psychological ownership could increase turnover intentions. Future development of the social work workforce should focus on combining stable employment with incentive reforms, such as strengthening autonomy, to optimize the career development environment for social workers while promoting stability.

Assessing Service Imbalances as Contributing Factors to Mobility Issues in the Metropolitan District of Quito, Ecuador

This article analyzes the service distribution imbalance within the Metropolitan District of Quito (DMQ) and its impact on urban mobility, aiming to propose strategies for more equitable territorial planning. The data were gathered from sources such as the National Institute of Statistics and Census (INEC), the Ministry of Health, the Ministry of Education, and OpenStreetMap. These data were integrated with GIS tools to model patterns of accessibility and mobility. Through a comprehensive approach, the study assessed education, banking services, employment, and healthcare, identifying how inequitable access to these services drives increased travel demand, especially in rural and peri-urban areas. In the education field, over 500 neighborhoods faced a shortage of institutions, compelling students to commute to other neighborhoods. For financial services, only 67% of neighborhoods had adequate access, with disparities across different socioeconomic zones. Additionally, employment-related mobility posed another challenge, with 88% of workers commuting outside their residential parish. Finally, access to healthcare was also unequal across the DMQ, particularly in peripheral areas where residents must travel long distances. In this context, it can be concluded that more efficient urban planning in the Metropolitan District of Quito (DMQ) is crucial to address imbalances in the distribution of services and enhance quality of life. Proposed strategies include establishing a land reserve, decentralizing services to underserved areas, integrating smart technologies, and promoting incentives for remote work, sustainable mobility, and public transport. These actions aim to foster greater territorial equity and accessibility.

Impact of in-work Benefits on Work Incentives in Croatia: A Microsimulation Analysis

Abstract Generous social benefit systems reduce work incentives, which has prompted more than half of the EU countries to introduce some sort of make work pay policies. Previous research for Croatia has shown that certain types of households have very low work incentives. Therefore, this paper aims to analyse the impact of in-work benefits on work incentives of non-employed persons and the poverty rate in Croatia. Using the tax-benefit microsimulation model EUROMOD, which is based on the EU-SILC 2020 data, three hypothetical types of in-work benefits are simulated. The results show that the characteristics and the design of in-work benefits are essential, and the choice of the appropriate type of benefit depends on the policy objectives. This paper is the first to analyze the impact of in-work benefits on the work incentives of all non-employed persons in Croatia.

Navigating the Role of Remittances in Attaining Sustainable Development Goals in Developing Countries: New Insights from Panel ARDL Model

One of the foremost sustainable development goals is eradicating poverty by 2030. To attain this goal, remittances are crucial, especially for developing countries, in improving the well-being of the people. Therefore, this study examines the influence of remittances on poverty alleviation in developing countries. The data from eighteen developing countries was used from 2001 to 2020. For data analysis, panel unit root tests, Pedroni cointegration test, and panel ARDL model are used. The study found that foreign remittances are negatively and significantly related to poverty eradication. Similarly, GFCF, LFPR, trade, and human capital are negatively and significantly related to poverty in developing countries, while the variable inflation rate is positively and significantly related to poverty. Considering the study's outcomes, it is concluded that remittances are crucial in mitigating the poverty level in developing countries. Therefore, it is recommended that governments should provide migration-friendly measures, such as incentives for workers to travel overseas and remit funds legally rather than illegally. Low-income families would benefit from this, but it would also help the government to increase its foreign reserves.

The impact of pension reform on employment, retirement, and disability insurance claims

We evaluate the 2011 comprehensive reform of Norwegian early retirement institutions using a parsimonious random utility choice model. Conditional on employment at age 60, we estimate a three-state conditional logit model to explain the realized labor market state at age 63 among the alternatives of employment, retirement, and disability program participation. The reform radically changed work incentives and/or pension access age for some (but not all) workers, such that the influence of economic incentives can be identified based on reform-generated variation only. We find that improved work incentives caused employment rates to rise considerably at the expense of early retirement and exit through disability insurance. Improved liquidity through a lower age to access own pension funds on actuarially neutral terms caused a small increase in employment and a large drop in disability program participation. Properly designed pension reforms thus need to take the interplay between old-age pension and disability insurance programs into account.

Monetary work-incentives within the Austrian tax and benefit system

AbstractThis paper analyses incentives to take up work or to increase working hours within the Austrian tax and benefit system. We analyze the monetary work incentives for a variety of family constellations (singles, single parents, families with children) with different incomes from dependent employment, when receiving unemployment benefits, and in the system of means-tested minimum income. Moreover, the effect of different earning ceilings (childcare and unemployment) and childcare costs is additionally investigated. Insufficient and, therefore, privately provided childcare is viewed as a missing component of the benefit system. The Austrian tax and benefit system is designed to be incentive-compatible for singles. Only marginal employment without deductions in the event of unemployment creates a negative incentive to expand employment beyond this extent. However, raising children creates negative monetary incentives. On the one hand, through the upper limits on additional earnings during times of childcare allowance, but especially when childcare costs arise.

Pengaruh Tipe Kepemimpinan Kepala Sekolah dan Pemberian Stimulus Kerja terhadap Kinerja Guru pada Smk Wira Buana Bekasi

Leadership style and the ability to motivate teachers are two aspects of school human resource management that are closely connected. Because of its impact on educator effectiveness, this merits consideration in plans for the future of education. Educators, in their role as creators of a conducive learning environment, have a responsibility to support their students' intellectual growth by challenging them to think critically and imaginatively. A good leadership style is context dependent; this is especially true for school principals, who are required to cultivate a dynamic leadership style. At the Wira Buana Bekasi Vocational School, the research was conducted. Finding out how principal leadership style and offering work motivation affect teachers' performance is the main goal of this research. Thirty instructors from Wira Buana Bekasi Vocational School participated in the survey that formed the basis of this study. Leadership style, offering job incentive, and instructor performance are the three facets of the data gathering approach that utilize primary data and are collected through interviews, observations, and surveys. The outcomes indicate that the administration style of the principal and the availability of work incentive significantly impact teacher performance in a good way. Results from data analysis employing partial and multiple correlation approaches, multiple regression, and followed by hypothesis testing provide support for this, as does the Y a decrease equation = 14.400 + 0.498 X1 + 0.232 X2. The r2 coefficient is 68%.

Driving Excellence: The Effect of Work Discipline and Incentive Programs on Employee Performance

This research evaluates the influence of work discipline and providing incentives on employee performance at PT. TOA Galva Industries, especially in the Speaker Department 1. We use correlation regression, determination, t-test, r-test, and F-test methods, and this research analyzes data from a population consisting of 83 employees. The results of the analysis show that the two independent variables, namely work discipline and providing incentives, simultaneously affect employee performance, while the rest are influenced by other factors that were not studied. Simultaneous tests reveal that both work discipline and incentives have a significant influence on employee performance with the calculated F value and significance level. However, based on the t-test, only work discipline was proven to have a significant effect on employee performance, while providing incentives did not show a significant effect. The managerial implication that can be taken is the importance of increasing work discipline as a significant factor in improving employee performance. The research results show that work discipline has a positive and significant influence on employee performance while providing incentives does not have a significant impact. Therefore, the management of PT. TOA Galva Industries must prioritize strengthening work discipline through strict supervision and consistent application of rules.

Mandatory Notice of Layoff, Job Search, and Efficiency

Abstract In all OECD countries, mandatory notice (MN) policies require firms to inform workers in advance of a layoff. In our theoretical framework, MN helps workers avoid unemployment and find better jobs by encouraging them to search for a new job while still employed, thereby increasing future production. The magnitude of this production gain depends on the relative effectiveness of search while employed versus unemployed. But on-the-job search and diminished work incentives reduce current production. If future gains outweigh current production losses, longer advance notice improves production efficiency. If not, Coasian bargaining predicts that firms offer a larger severance instead of longer notice. With bargaining, the sole efficiency loss of MN is due to delayed separations of unproductive job matches. We test these predictions using novel Swedish administrative data on layoff notifications. Workers eligible for extended MN receive longer notice and larger severance, resulting in less exposure to nonemployment spells and higher-paying jobs. These favorable labor market outcomes are solely due to longer notice; in contrast, larger severance delays job finding and has no impact on wages. We also show that advance notice replaces job search while unemployed with more effective search while employed. On the production side, we document a productivity drop among notified workers and estimate a production loss due to delayed separations. Using our estimates of production gains and losses to evaluate the overall production efficiency, we conclude that the gains of MN seem to outweigh the losses.

Impact of Human Welfare Measures in Working Efficiency of Bank Employee in Banking Sector of India

Employee welfare measures are essential for maintaining a productive and satisfied workforce. The primary component of organizational productivity is thought to be the employee. The personnel of a business have a critical role in its potential to achieve better positions in terms of profitability and production. Because employees are a vital component of any institution in the development and survival of any firm, employee welfare is a crucial factor that cannot be disregarded. An important part of the nation's economy is the banking sector. From the current review it has found that Employee welfare is crucial since it gives workers incentive, and if a company is exclusively focused on great performance, then it is a waste of resources. Overview "Comfortable living and working conditions" equate to welfare. Worker welfare refers to initiatives aimed at improving the quality of life for employees in banking sector.

A COMPARATIVE ANALYSIS OF THE IMPACT OF WORK INCENTIVES, TRAINING PROGRAMS, AND STRESS LEVELS ON PRODUCTIVITY IN THE MANUFACTURING SECTOR

The manufacturing sector is pivotal to economic progress and industrial innovation, particularly in Malaysia. This study investigates the impact of work incentives, training programs, and stress levels on employee productivity at Alps Electric (Malaysia) Sdn Bhd. Utilizing a quantitative research methodology and analysing data from 205 employees, the findings reveal that financial and non-financial incentives and comprehensive training programs significantly enhance productivity. However, despite a moderate positive correlation with productivity, high levels of occupational stress pose long-term risks to employee well-being and operational efficiency. The study underscores the necessity of integrating effective stress management strategies with incentive and training programs to sustain productivity gains. The insights provided aim to guide the development of targeted interventions and policies to foster a motivated, resilient workforce in the manufacturing sector.

Analysis of the Influence of Work Environment, Health Insurance, Incentives and Motivation on Employee Productivity of BNI Bank Supporting Branch Offices in East Lombok, West Southeast Nusa

This study aims to analyze the effect of work environment, health insurance, incentives and motivation on employee productivity at Bank BNI East Lombok Sub-Branch Office. The research was conducted on all employees of Bank BNI East Lombok Sub-Branch Office. The population used in this study were 46 employees. This study uses analysis with the Structural Least Squares model. The results showed that the variables of work environment, health insurance and motivation had no positive and significant effect on employee productivity. The incentive variable has a positive and significant effect on the work productivity of employees of the BNI Bank Sub-Branch office in East Lombok.

Hours of work and the long‐run effects of in‐work transfers

AbstractPolicymakers have increasingly turned to ‘in‐work transfers’ to boost incomes among poorer workers and strengthen work incentives. One attraction of these is that labour supply elasticities are typically greatest at the extensive margin. Because in‐work transfers are normally subject to earnings‐related phase‐outs, they tend to most strongly incentivize part‐time work, weakening incentives to increase hours beyond that. But if part‐time work generates relatively little in the way of human capital and career progression, then policy design should factor in the longer‐term consequences of labour supply choices along the intensive margin. To that end, we use a dynamic model of female labour supply with endogenous human capital accumulation, and study actual and hypothetical welfare reforms in the UK. We show that for a given expansion in the government budget, those reforms that incentivize full‐time work can do considerably more to increase incomes, including among poorer households, and to raise welfare. Our results suggest that in‐work transfers could be refined by paying greater attention to the intensive margin effects through the design of their phase‐outs.

THE EFFECT OF WORK DISCIPLINE, INCENTIVES, WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE MEDIATED BY JOB SATISFACTION IN OIL AND GAS COMPANIES IN BATAM CITY

Employee performance can be influenced by various factors, including work discipline, incentives, and work environment. When these factors are good or good, they can lead to increased employee performance. This research aims to examine the influence of work discipline, incentives and work environment on employee performance at oil and gas companies in Batam City, with job satisfaction as a mediating factor. The research methodology uses Structural Equation Modeling (SEM) analysis using SmartPLS. This research involved 431 employee respondents and the results showed that work discipline, providing incentives and the work environment had a significant and positive effect on job satisfaction. Furthermore, job satisfaction has a significant effect on employee performance, and the combined impact of work discipline, incentives, and work environment on employee performance has a significant positive value which is mediated by job satisfaction.

Work incentives in Australia: The distribution of effective marginal tax rates for working‐age Australians in 2023

Work incentives in Australia: The distribution of effective marginal tax rates for working‐age Australians in 2023

The Employer Branding of Cultural Heritage Hotel’s Impact on Electronic Word of Mouth

This study aims to determine the effect of employer branding on electronic word of mouth in one of the cultural heritage hotels. Data were collected through a survey distributed to 121 employees population of one of the hotels in Bandung. In this study, the independent variable employer branding uses four dimensions, namely work culture, salary and incentives, diversity and ethics, and CSR. As for the dependent variable electronic word of mouth, the dimensions used are volume and valance. These dimensions were adopted from previous studies that used employer branding and electronic word of mouth as the main focus of research. Hypothesis testing, validity, and reliability were tested using PLS-SEM as the analysis method. The research results that have been stated, show that employer branding affects electronic word of mouth in employees and the effect of employer branding on electronic word of mouth is positive and significant.

Pengaruh Pemberian Insentif Kerja dan Motivasi Kerja Terhadap Kinerja Karyawan pada PY. Anugerah Tangkas Transportindo

This article aims to find out the effect of providing work incentives and work motivation on employee performance at PT. Anugerah Tangkas Transportindo. This type of research is causal associative research. The variables of this research are independent variables, namely work incentives (X1), work motivation (X2), while the dependent variable is employee performance (Y). In this study, the population is only 38 people, so that all employees in the Custom Clearance division at PT. The Jakarta Transportindo Agile Award was used as a sample. The data analysis consisted of validity and reliability test, classical assumption test, multiple regression analysis, F test, and t test. The results of the data analysis show that the work incentive variable has a significant influence on employee performance. There is a significant influence between work motivation and employee performance. The variables of work incentives and work motivation have a simultaneous effect on employee performance. The results of the partial and simultaneous determination coefficient test, it can be concluded that the work incentive variable (X1) has a weak influence on employee performance by 28.9%. The variable of work motivation also had a weak influence on employee performance by 13.8%. Simultaneously, the variables of work incentives and work motivation had a not very strong influence on employee performance by 35.6%, meaning that there were still 64.4% variations in employee performance that were influenced by other factors

Benefits and tax credits

Abstract The UK government spends over £100 billion each year on working-age benefits, predominantly for those with low incomes or disabilities. Broadly, these payments protect families from hardship, reduce inequality, and support disabled people. But governments across the world and over time have designed these programmes in very different ways. We examine trends in benefit policy in the UK over time, including the treatment of work, support for children and housing costs, and the role of health-related benefits. We then provide a survey of the existing evidence on a wide range of questions in benefit policy design, including take-up, work incentives, and the impact on the next generation—and bring this evidence to bear on key UK policy questions.