| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5061136 | Economics Letters | 2009 | 5 Pages |
Abstract
This paper models employment relationship as a repeated principal-agent problem with private evaluation. The efficient contracts exhibit correlated movements between lagged wage and current effort that are consistent with the positive feedback between pay and morale in practice. Low morale therefore is an integral part of a well-functioning relationship.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Rui R. Zhao,