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systems. We analyze the relationship between screening and monitoring in the context of a principal-agent model and test the … monitoring is more difficult. This screening is also associated with higher productivity and higher wages and benefits, as … pay higher wages to attract and retain such workers. Screening for other attributes, such as cognitive ability, does not …
Persistent link: https://www.econbiz.de/10009363337
In a principalagent framework, principals can mitigate moral hazard problems not only through extrinsic incentives such as monitoring, but also through agents intrinsic trustworthiness. Their relative usage, however, changes over time and varies across societies. This paper attempts to explain...
Persistent link: https://www.econbiz.de/10009363355