Why Do Social Skills Matter?

Suren Basov

No 840, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: In this paper I propose a model where social skills of a manager signal the workers that their e¤ort is productive. In this model …rms with a high productivity of e¤ort hire a socially skilled manager and pay higher wages, and workers hired by these …rms exert higher e¤ort. In a broader context, the paper argues the employees are compensated with a higher wage and better working conditions for higher levels of effort.

Pages: 22 pages
Date: 2002
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