By browsing this website, you acknowledge the use of a simple identification cookie. It is not used for anything other than keeping track of your session from page to page. OK
0

How incentives increase inequality

Bookmarks
Article

Bacache-Beauvallet, Maya

Labour. Review of Labour Economics and Industrial Relations

2006

20

2

June

383-391

theoretical analysis ; wage differential ; wage incentive

OECD countries

Wages and wage payment systems

English

Bibliogr.

"We determine the optimal level of bonuses in the case of Co-production between an agent and multiusers. There is Co-production when the outcome is the result of both the agent's effort and the user's effort and type. Paying bonuses to the agent encourages him to vary his effort according to the user he meets. This variety in the agent's effort results in an increase in inequality. Hence, the optimal level of bonuses is muted when the principal cares about equality among users. This is typically the case in education or health."

Digital



Bookmarks