Friday, June 11, 2010

EconomicsUSA: Labour: Does increased compensation cause increased productivity? It depends, says expert

Does increase of compensation lead to a strait-line increase of productivity by workers? As a general question, the answer is No. But it can work in certain situations for the employer, with preexisting goodwill, to spur productivity with a small incrase in wages. That suggests in a particular work culture situation, productivity was already lapsed. Let's leave at this level of abstraction, rather than putting forth various hypothetical scenarios.

Clickup the Portfolio of Ideas playerpage link. Portfolio of Ideas presents Ben Ariely of Duke University on the question whether increased compensation to workers, causes increased production by them.

-- EconoMix

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