PPE Notes University Of Oxford PPE Notes
Definition
Features
Theoretical Background
Extent
Advantages
Disadvantages
Job tenure
Overriding paradigm
Permissive Conditions
Information Costs
Mobility Costs
Efficiency Wages
Deferred Compensation - Becker and Stigler (1974)
Evidence:
Medoff & Abraham (1981): pay rises more with tenure than productivity
Lazear (1979): earnings increases are slower for the self-employed
De Oliveira (1989): wages increase more slowly than MP for short-term workers. Wages increase more rapidly than MP for long term workers.
Theoretical Context:
PA Theory
Williamson, Wachter & Harris (1975)
Practice Essay Plan: Why do firms internalise some workers and not others
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