EconPapers    
Economics at your fingertips  
 

The Impact of Supervision and Incentive Process in Explaining Wage Profile and Variance

Nitsa Kasir and Idit Sohlberg
Additional contact information
Nitsa Kasir: Kaliner

Papers from arXiv.org

Abstract: The implementation of a supervision and incentive process for identical workers may lead to wage variance that stems from employer and employee optimization. The harder it is to assess the nature of the labor output, the more important such a process becomes, and the influence of such a process on wage development growth. The dynamic model presented in this paper shows that an employer will choose to pay a worker a starting wage that is less than what he deserves, resulting in a wage profile that fits the classic profile in the human-capital literature. The wage profile and wage variance rise at times of technological advancements, which leads to increased turnover as older workers are replaced by younger workers due to a rise in the relative marginal cost of the former.

New Economics Papers: this item is included in nep-hrm and nep-knm
Date: 2018-06
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Published in Bank of Israel ,Discussion Paper Series, 2003

Downloads: (external link)
http://arxiv.org/pdf/1806.01332 Latest version (application/pdf)

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:arx:papers:1806.01332

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().

 
Page updated 2018-07-26
Handle: RePEc:arx:papers:1806.01332