|Kräkel, Matthias and Schöttner, Anja (June 2009): Minimum Wages and Excessive Effort Supply. SFB/TR 15 Discussion Paper No. 264|
It is well-known that, in static models, minimum wages generate positive worker rents and, consequently, inefficiently low e?ort. We show that this result does not necessarily extend to a dynamic context. The reason is that, in repeated employment relationships, ?rms may exploit workers’ future rents to induce excessively high effort.
|Item Type:||Paper (Discussion Paper)|
|Keywords:||bonuses; limited liability; minimum wages|
|Collections:||Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems|
Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > B4 - Die Gestaltung von Turnieren im Rahmen der Corporate Governance
|Subjects:||300 Social sciences > 330 Economics|
|Last Modified:||10. Jul 2012 13:08|