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Subjective Evaluation of Performance and Evaluation Interview

Subjective Evaluation of Performance and Evaluation Interview

Empirical Evidence from France

(p.107) 3 Subjective Evaluation of Performance and Evaluation Interview
The Analysis of Firms and Employees
Marc-Arthur DiayeNathalie GreenanMichal W. Urdanivia
University of Chicago Press

A main contribution of linked longitudinal employer-employee data is to provide a decomposition of wage rates into components due to individual heterogeneity and to firm heterogeneity. In France, a 2002 study showed that the person effect and firm effect account, respectively, for 70 percent and 20 percent of the variation of wages. The person-effect component is bigger in France than in the United States where it represents half of the wage variation. This indicates that the devices used by firms to attract or select workers with specific characteristics play a central role in determining the firm's wage structure. This chapter examines the individual evaluation interview, a human resource management (HRM) practice that could contribute to the two goals of selecting workers and stimulating their effort. Its empirical investigation rests on a matched employer-employee survey on organizational change and the use of information and communication technology. The chapter uses a propensity score methodology to evaluate the causal effect of individual evaluation interviews on performance, work overload, and wage setting.

Keywords:   France, wages, firms, workers, organizational change, wage variation, evaluation interviews, work overload, performance

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