Minimum wages and excessive effort supply

by Matthias Kräkel and Anja Schöttner

It is well-known that, in static models, minimum wages generate positive worker rents and, consequently, inefficiently low effort. We show that this result does not necessarily extend to a dynamic context. The reason is that, in repeated employment relationships, firms may exploit workers future rents to induce excessively high effort.-- bonuses ; limited liability ; minimum wages

Year of publication:	June 2009
Authors:	Kräkel, Matthias ; Schöttner, Anja
Publisher:	Bonn : Graduate School of Economics
Subject:	Mindestlohn \| Minimum wage \| Leistungsmotivation \| Work motivation \| Arbeitsvertrag \| Labour contract \| Vertragstheorie \| Contract theory \| Theorie \| Theory

freely available

Full text |

More access options

www.bgse.uni-bonn.de

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

Which error do you want to report?

Report: URL of this record is broken

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: Addition of an URL to that resource

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: The language(s) of that resource is/are…

Please note: Required language not in the list? Please use comment field

Report: Addition of an identifier to that resource

Report: report typo

Report: Add statement

Report: Add keywords

Please use the commentary box to describe other errors

Would you like to receive a feedback?

Commentary

Please type the code from the image

For general questions please use this address.

Persistent link: https://www.econbiz.de/10003850666

A service of the