Børsum, Øystein - Økonomisk institutt, Universitetet i Oslo - 2011
worker. I show that if the worker, too, knows the true quality of the firm, then certain long term wage agreements can … tied to firm performance, because only a worker in a good quality firm would be willing to defer compensation to an … credibly signal firm quality. Such wage agreements have a low initial wage and are equity-like in the sense that future pay is …