Optimal combination of wage cuts and layoffs—the unexpected side effect of a performance-based payment system
Abstract This study analyzes the trade-off relationship between layoffs and wage cuts. If the introduction of a performance-based payment system stimulates workers’ pecuniary-motivated minds, their morale can be damaged more severely by wage cuts than prior to the introduction thereof. Utilizing thi...
Main Authors: | , |
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Format: | Article |
Language: | English |
Published: |
Sciendo
2017-12-01
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Series: | IZA Journal of Labor Policy |
Subjects: | |
Online Access: | http://link.springer.com/article/10.1186/s40173-017-0092-2 |