BREGN, Kirsten

Management of the new pay systems in the public sector - some implications of insights gained from experiments - London, UK : Sage Publications, March 2008

During recent decades, new pay systems have been widely introduced in Organization for Economic Co-operation and Development (OECD) countries. Experiments draw attention to some aspects which are normally not included in analyses of pay systems, namely fairness and reciprocity. Furthermore, the experiments indicate a different understanding of what are perceived as gains and losses than what is assumed in conventional economic theory, and they also indicate an asymmetric evaluation of gains and losses. The aim of the article is to present some results from these experiments and to investigate their implications for pay systems in the public sector. The conclusion is that the results have important implications for the management of pay systems, and due to some specific characteristics of the public sector, for management of pay systems in the public sector in particular