The lay system in commercial fisheries: Origin and implications

McConnell, Kenneth E.; Price, Michael K.

doi:10.1016/j.jeem.2005.09.004

Cited by 71 publications

(46 citation statements)

References 25 publications

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“…The US Chesapeake Bay blue crab fishery uses a pure (fix) wage system in approximately 40% of the trips (McConnell and Price 2006); The US factory trawlers in the Bering Sea harvesting and processing groundfish remunerate the processing crew and engineers primarily via a (fix) daily wage (McConnell and Price 2006); 67% of the trawl vessels in Turkey (Ünal 2002); Some small-scale purse seiners in Vietnam remunerate the crew with a daily fixed wage of about 30 to 40 thousand Vietnamese Dong (case 1), complemented with 10% of the total revenues shared between the crew (case 2) (Thuy et al 2013); The industrial fleet of Saint-Malo (France) remunerates crew with a fixed wage to guarantee the crew a minimum wage and a shared wage to act as an incentive.…”

Section: Case 1: Fixed Remuneration Systemmentioning

confidence: 99%

“…Crew are usually remunerated through shared remuneration systems (also known as lay systems) rather than fixed wages (i.e., Zoeteweij 1956;Acheson 1981;Anderson 1982;Platteau and Nugent 1992;Matthiasson 1997;McConnell and Price 2006). In these remuneration systems, crew members are paid with a share of the revenues (i.e., value of landings) or a share of the revenues minus costs.…”

Section: Introductionmentioning

confidence: 99%

“…Indeed, it is extensive to fisheries worldwide as can be seen from Table 1: Table 1 Existing references on the use of shared remuneration systems ContinentShared remuneration systems have traditionally been used in fisheries because they improve productivity (Weitzman and Kruse 1990). This is because shared remuneration systems share risks (costs) and rents (profits) between the crew and the vessel owner (Stiglitz 1974;Sutinen 1979;Acheson 1981;Plourde and Smith 1989;McGoodwin 1991), and provide incentives based on outputs in situations where monitoring of worker's effort is unobservable or costly (Stiglitz 1974;Eisenhardt 1989;McConnell and Price 2006;Vestergaard 2010).…”

Section: Introductionmentioning

confidence: 99%

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Remuneration systems used in the fishing sector and their consequences on crew wages and labor rent creation

et al. 2017

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In most fisheries worldwide, crew are paid through different shared remuneration systems rather than a fixed wage. In shared remuneration systems, wages can significantly increase when the economic performance of vessels improve, and consequently provide incentives to workers. However, in recent years, mainly due to high overexploitation levels that lead to reduced productivity and consequently lower salaries shared remuneration systems have lost their attractiveness. Different remuneration systems applied in fisheries world-wide are described and analyzed comparatively. Results explain how crew wages and rent distribution outcomes vary between the different remuneration systems depending on the state of exploitation of the resource.

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Section: Case 1: Fixed Remuneration Systemmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Remuneration systems used in the fishing sector and their consequences on crew wages and labor rent creation

et al. 2017

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“…Similarly, net operating incomes from motorized mini-trawl in Andhra Pradesh (` 867/trip) and mechanized gillnet in Gujarat (` 862/trip) were also among the lowest. The lay system of wage sharing (McConnel and Price, 2006) was followed in all the states under consideration wherein, the crew were remunerated with a share of revenues or share of revenues less costs. Nevertheless, high level of variability in shares was noticed across regions with the highest in Tamil Nadu (60-75% of gross revenue) and Kerala (50-60%) and the least in Odisha (12-20%).…”

Section: Income From Fishing: An Appraisalmentioning

confidence: 99%

Priorities and Strategies to Boost Incomes of Marine Fisher Folk in India

Parappurathu¹,

George²,

Narayanakumar³

et al. 2017

Agri. Econ. Rese. Revi.

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This paper presents a set of alternative strategies and options for enhancing the incomes of India's coastal fisher folk. Several options such as sustainable exploitation of deep sea and non-conventional resources, improving the efficiency of fishing through modernization/technological up-gradation of fishing fleet/ gears, harnessing the potential of space and information communication technologies (ICT), intensification of mariculture, and strengthening fish value chains are discussed. The paper underlines that a thriving coastal fishery economy is necessary to meet the future demand for fish and fishery products in the country.

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“…In the study area, and in most fisheries worldwide [3][4][5][6][7], crew remuneration is paid by means of a crew-share system, whereby the crew receives a share of the gross returns, rather than a fixed wage. Crew-share payments may be based only on the gross returns, or they may be paid as a "top up" of a fixed minimum wage [5].…”

Section: Introductionmentioning

confidence: 99%

Drivers of Labor-Related Indicators across Diverse Mediterranean Fisheries

2017

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This regional case study is focused on employment, remuneration and labor productivity, with a particular emphasis on the interplay between labor productivity and other labor-related indicators and macroeconomic conditions in Italy, Egypt, Lebanon and Greece. Its value lies in the high degree of consistency and comparability of the data, owing to a shared data collection methodology. This has allowed for the compilation of both national and regional comparisons. The data is treated in two groups-the first group consists of national data that considers all the active vessels in a country; the second group focuses on the trawl segments of Italy and Egypt. These two countries present an interesting case study because they are so different in terms of labor productivity and remuneration performance. For instance, in Italy labor shortages have caused a shift in fishing strategies towards less labor-intensive operations to maintain the socioeconomic sustainability of the fisheries, while in Egypt macroeconomic conditions have resulted in a larger labor pool and strong incentives to work in the fisheries sector. The regional study demonstrates that labor-related indicators are interconnected and there is an inversely proportional relationship between labor productivity and remuneration and employment levels. This relationship necessitates a combined analysis. The results across and between the countries were compared, with particular attention given to labor productivity and remuneration in the respective countries with a discussion centred around the potential drivers of labor productivity.

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The lay system in commercial fisheries: Origin and implications

Cited by 71 publications

References 25 publications

Remuneration systems used in the fishing sector and their consequences on crew wages and labor rent creation

Remuneration systems used in the fishing sector and their consequences on crew wages and labor rent creation

Priorities and Strategies to Boost Incomes of Marine Fisher Folk in India

Drivers of Labor-Related Indicators across Diverse Mediterranean Fisheries

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