Template-type: ReDif-Paper 1.0
Author-Name: Muysken Joan
Author-Name: Zwick Thomas
Author-workplace-name: METEOR
Title: A note on incentive wages with human capital formation
Abstract: This paper shows that investment inhuman capital may be another reason for incentive wages in addition to "retain, recruit and motivate". It is shown under which circumstances firms pay wages in excess of the market clearing level in order to induce workers to invest. Investment in human capital is inefficient when workers can determine it due to rent sharing and sunk costs. 
Keywords: labour economics ; 
Series: Research Memoranda
Creation-Date: 1996
Number: 012
File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:5200eb7e-30cf-48d0-8cb3-d9beda1eaa6c/datastreams/ASSET1/content
File-Format: application/pdf
File-Size: 247292
Handle: RePEc:unm:umamet:1996012