Monitoring for Worker Quality
Gautam Bose and
Kevin Lang
Journal of Labor Economics, 2017, vol. 35, issue 3, 755 - 785
Abstract:
Much nonmanagerial work is routine, with all workers having similar output most of the time. However, failure to address occasional challenges can be very costly, and consequently easily detected, while challenges handled well pass unnoticed. We analyze job assignment and worker monitoring for such "guardian" jobs. If monitoring costs are positive but small, monitoring is nonmonotonic in the firm's belief about the probability that a worker is good. The model explains several empirical regularities regarding nonmanagerial internal labor markets: low use of performance pay, seniority pay, rare demotions, wage ceilings within grade, and wage jumps at promotion.
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://dx.doi.org/10.1086/690713 (application/pdf)
http://dx.doi.org/10.1086/690713 (text/html)
Access to the online full text or PDF requires a subscription.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:doi:10.1086/690713
Access Statistics for this article
More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().