Blakemore, Arthur E; Low, Stuart A; Ormiston, Michael B - In: Journal of Labor Economics 5 (1987) 4, pp. 124-35
The purpose of this paper is to illustrate how a t wo-part compensation system composed of a rigid base salary and a fle xible bonus can reduce turnover. It is shown that bonus pay is an eff ective retention device if it is risk reducing and is correlated with outside contract offers. For the...