We develop a product market theory that explains why firms invest in general training of their workers. We consider a …-specific training if others do the same, because they would otherwise suffer a competitive disadvantage or need to pay high wages in …

We investigate how workers' performance is affected by the timing of wages in a real-effort experiment. In all … wages by small amounts raises performance by about 15% relative to a constant wage. The effort reactions can be organized by … a model in which agents reciprocally respond to wage impulses, comparing wages to an adaptive reference standard …

align public sector compensation to private wages inlow-skilled professions …