2008
DOI: 10.1111/j.1467-8454.2008.00352.x
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Fixed‐wages, Wage Differentials and Worker Heterogeneities

Abstract: We study incentive-compatible labour contracts in the case where individual productivity, preference for leisure and time preference rate are unobservable by the principal in a two-period model. We first reduce this three-dimensional problem to a standard one-dimensional screening problem. Features of second-best labour contracts provide a rationale for both fixed-wages and wage differentials. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd/University of Adelaide and Flinders Univ… Show more

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Cited by 3 publications
(1 citation statement)
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“…The second phase consisted of incentive allowances according to three criteria: educational, scientific, and methodological work. This approach contributed to improving the quality of students' education (CARLIER; GAUMONT, 2008). A group of American authors (A. Arora, S. Belenzon, A. Patacconi, L. Scheer, M. Shankerman, J.…”
Section: Resultsmentioning
confidence: 99%
“…The second phase consisted of incentive allowances according to three criteria: educational, scientific, and methodological work. This approach contributed to improving the quality of students' education (CARLIER; GAUMONT, 2008). A group of American authors (A. Arora, S. Belenzon, A. Patacconi, L. Scheer, M. Shankerman, J.…”
Section: Resultsmentioning
confidence: 99%