The Seminar, held in Paris in December 1998, was a forum for discussion, in a broad sense, gathering together people from international scientific circles and people responsible for the preparation of political decisions. Bringing together delegates from more than 30 European countries, it was...

We analyze the effects of wage floors on optimal job design in a moral-hazard model with asymmetric tasks and imperfect aggregate performance measurement. Due to cost advantages of specialization, assigning the tasks to different agents is efficient. A sufficiently high wage floor, however,...