Determine the type of compensation firms choose

Reference no: EM13237417

ome workers in the economy are paid a flat salary and some are paid by commission. Which of compensation scheme would require more monitoring by supervisors? In which case do firms have an incentive to pay more than the equilibrium level (as in the worker effort variant of efficiency-wage theory)? What factors do you think determine the type of compensation firms choose?

Reference no: EM13237417

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