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Journal of Economic Perspectives: Vol. 5 No. 2 (Spring 1991)

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Labor Economics and the Psychology of Organizations

Article Citation

Lazear, Edward P. 1991. "Labor Economics and the Psychology of Organizations." Journal of Economic Perspectives, 5(2): 89-110.

DOI: 10.1257/jep.5.2.89

Abstract

This essay is a discussion of how economists are attempting to understand institutions within the organizations of the labor market. The institutions and issues discussed include mandatory retirement; discontinuous jumps in wages; pay compression; rights of tenure; up-or-out hierarchies; timing of raises, promotions and evaluations; the existence of partnerships; the use of bonuses vs. penalties; and pay as a motivator.

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Authors

Lazear, Edward P. (U Chicago and Hoover Institution)

JEL Classifications

J00: Labor and Demographic Economics: General

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