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On Take-Off Bonus Rate

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Author Info
Yamakawa, S.

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Abstract

A bonus scheme for tenure systems in which the total wage consists of the base wage and the bonus proportional to the excess production more than the minimum requirement is considered. The existence of the take-off bonus rate below which the employee does not response to the increase of the bonus rate is pointed out in this paper. Other characteristics of the take-off rate and the optimal effort level of the employee are observed and impications for tenured workers of Japanese life-time employment system are provided.

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Publisher Info
Paper provided by Rochester, Business - Quantitative Methods Working Paper Series in its series Papers with number 96-01.

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Length: 17 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:robuqm:96-01

Contact details of provider:
Postal: UNIVERSITY OF ROCHESTER, WILLIAM E. SIMON GRADUATE SCHOOL OF BUSINESS ADMINISTRATION, ROCHESTER NEW YORK 14627 U.S.A.
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Web page: http://www.simon.rochester.edu/
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Related research
Keywords: INCENTIVES ; WAGES;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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