Business, Management and Accounting
3 years ago

Unequal pay in agencies leads to inefficient effort allocation.

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SSRN Electronic Journal
Unequal Remuneration in Agency Relationships
Philipp Weinschenk

Paper Summary

Unequal pay can be used by a boss to pay employees differently, even if they are equally skilled. This can help the boss save money, but it can also lead to employees not working as efficiently as they could.

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