Working in Public and Private Firms
AbstractWe develop a theoretical framework for comparing the style of work in public and private enterprises. We incorporate âsocializingâ, as an activity that yields utility for workers and affects a firmâs output, into a simple multitask model of work organization. In contrast with previous models, we establish the two following results. First, the optimal workersâ compensation policy displays a larger incentive intensity in the private firm than in the public firm. Second, labour productivity in the private firm may be higher or lower than in the public firm. Both results fit well with the findings of empirical work.
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Bibliographic InfoPaper provided by Penn Economics Department in its series Penn CARESS Working Papers with number 7942b6b570793de0891a05acb5d61374.
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- L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
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