English, Article, Journal or magazine article edition: Minimum Wages and Excessive Effort Supply Matthias Kräkel; Anja Schöttner

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Bookmark: http://trove.nla.gov.au/version/122500
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Minimum Wages and Excessive Effort Supply
Author
  • Matthias Kräkel
  • Anja Schöttner
Physical Description
  • preprint
Notes
  • It is well-known that, in static models, minimum wages generate positive worker rents and, consequently, ineffciently 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. Creation-Date: 2009-07
  • bonuses, limited liability, minimum wages
  • RePEc:trf:wpaper:264
Language
  • English
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