A note on incentive wages with human capital formation
AbstractThis paper shows that investment inhuman capital may be another reason for incentive wages in addition to "retain, recruit and motivate". It is shown under which circumstances firms pay wages in excess of the market clearing level in order to induce workers to invest. Investment in human capital is inefficient when workers can determine it due to rent sharing and sunk costs.
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Bibliographic InfoPaper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 012.
Date of creation: 1996
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
labour economics ;
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