1 Tournament Pay In this section we consider thinking about pay at firms as being similar to what happens at a sports tournament.

Slides:

Advertisements

Similar presentations

The Role of Employment for Growth and Poverty Reduction PREM learning week 2007 Catalina Gutierrez Pieter Serneels.

Advertisements

Demographics Of Labor Shortage In Minnesota Tom Gillaspy, State Demographer Minnesota Planning January 2001.

Internal labour markets & promotion ladders Internal labour markets (ILM) Internal labour markets (ILM) Predictions of ILM theory Predictions of ILM theory.

Market Impact of Payroll Tax At the bottom of page 157 the author starts with the sentence, “This result illustrates a principle that is worth remembering:

Chapter 1 Introduction. Why study Labor Markets? - Personal gain - would it be wise to train to be a blacksmith in Nebraska? What about a soybean farmer?

INFORM+INSPIRE The Griffith Insurance Education Foundation Disability in America: The Toll it Takes and Why Taxpayers Should Care Conrad S. Ciccotello.

Who pays for health insurance? It is important to relate health insurance benefits to the wage rate that workers are paid. The simplest way is to examine.

Business Studies at Key Stage 4 Miss George Mrs Tattersall.

Advanced Pricing Ideas 1. 2 We have looked at a single price monopoly. But perhaps other ways of pricing can lead to greater profits for the sports team.

McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 12 Incentive Pay.

1 3 rd Price Discrimination. 2 Review We saw a monopoly is the only firm that sells a product. Up to this point we worked with a single price monopoly.

Motivation from an Economics Perspective © Nancy Brown Johnson, 2002.

Chapter 12 Labor Market Contracts and Work Incentives Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Labor Economics,

More of chapter 7 1. The multiplier A story: Say every week you go to The Max on Thursday night and you always spend $10. You also do lots of other things.

1 Models of Discrimination. 2 Prejudice is a feeling or emotion. Discrimination is an action. An economic definition of discrimination is unequal treatment.

MGMT Managing Employee Reward Systems Salary Structures Purpose and Goals –establish series of grades to classify jobs according to similar worth.

What type of people go to University? By Team Smiler.

1 Schooling as a Signal. 2 The Schooling Model we saw in a previous section assumed that education really increases a worker’s productivity. Here we will.

Copyright © 2009 Pearson Education, Inc Topic 6-2. (Ch. 11) Effort, Productivity, and Pay.

Managerial Economics and Organizational Architecture, 5e Managerial Economics and Organizational Architecture, 5e Chapter 14: Attracting and Retaining.

Is it unfair or discriminating that those who are strong compete against those who are weak? Lessons from the tournaments of ATP tennis game.

1 Models of Effort. 2 The Principal-Agent Problem Human Resource Management is a separate field of study today. But, we in economics have a take on the.

1 Work-Life Incentive Schemes Models in this area look at the whole working career of an individual and try to make pay over the career keep the individual.

1 Price Supports Here are two examples of government intervention in a market.

1 An Overview of the Current State of the Kentucky Economy What are Some Strengths and Weaknesses? Kenneth Troske Gatton College of Business and Economics.

CHOOSING A CAREER. CHOOSING A CAREER INVOLVES 4 MAIN STAGES: SELF AWARENESS OPPORTUNITY AWARENESS DECISION MAKING TAKING ACTION.

Lesson 4.2 Career Exploration February 28, 2011Copyright © … REMTECH, inc … All Rights Reserved1 Introduction Today, 3 out of every 4 college.

Marketing Unit 2. Marketing objectives - the purpose of marketing Marketing objectives are the goals that the firm sets to allow it to achieve its corporate.

Germany`s Education System  Elementary school  Orientation stage  Special school types  Lower secondary school  Comprehensive school  Grammar school.

Functions of the Human Resources Department. 1) Employment matters  Recruiting, selecting and appointing all new staff  Terminating employment through.

Chapter 15: Job Search: External and Internal

The Free Enterprise System

 A computerized career information delivery system.

5 Highest Paying Jobs YOUR NAME HERE. Health Specialty Teachers  Top skills: communication and science  Annual earnings: $85,000  Percent of Growth:

Promotions, pay & gender discrimination  1. Background  2. Theory –Tournaments –Glass ceilings & sticky floors  3. Empirical evidence –Promotion –Pay.

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Attracting and retaining qualified employees Personnel economics.

Chapter 14 – Researching Careers Test Friday, March 21, 2014.

Lecture 5 Financial Incentives This lecture is paired with our previous one that discussed employee benefits. Here we focus on the reasons why monetary.

THE WORLD OF WORK Maryam Ebrahim – H Hanadi Abdullah – H Project 2 – company profile.

Chapter 7 Trade McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Bell Ringer Activity Which economic system does the United States have? (Command, Market, or Mixed) Why do you think that?

PLANNING YOUR CAREER WHAT IS THE DIFFERENCE BETWEEN A JOB AND A CAREER? PG NAME, TEACHER AND DATE.

 Cities with solid base of human capital attract more quality employers that pay high wages  Cities with limited human capital stuck with dead end jobs.

Read to Learn Identify the differences between management structures. Name six skills necessary for effective management.

  a segment of society whose members hold similar amounts of resources and often share values, norms, lifestyle, education and type of work  In Canada,

Bohdana Sychevska RECRUITMENT.

1 Compensating Wage Differentials. 2 We know different people get paid different wages. In this section we focus on the differences in the JOBS that lead.

Employer Taste for Discrimination

Are There Fast Tracks in Economics Departments? Valerie Smeets (UC3M & CCP, ASB) Madrid, October 2007.

What do your reading scores say about your college readiness?

1-1 Human Resource Management Gaining a Competitive Advantage Chapter 2 Strategic Human Resource Management McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill.

Computer Software engineer By: Eric Musser. What is This? Computer engineers make programs to run a computer. Computer engineers make programs to run.

1 Chapter 29 Minimum Wages. 22 You are Here 3 Why Have a Minimum Wage? 3 The argument for a minimum wage is that people who work full time should not.

Job Search: External and Internal

Workshop HN BUSINESS: GU2 – STAGE 3 EVALUATION.

Worker Mobility: Migration, Immigration, and Turnover

در تجزیه و تحلیل شغل باید به 3 سوال اساسی پاسخ دهیم Job analysis تعریف کارشکافی، مطالعه و ثبت جنبه های مشخص و اساسی هر یک از مشاغل عبارتست از مراحلی.

Click here to advance to the next slide.

The gender story is similar: women pursue STEM degrees at lower rates than men despite similar interest levels Interest in STEM in 12th grade vs. earning.

Low Wage Level* Few Workers Are Lower-Wage

The Free Enterprise System

Exhibit Among Large Firms Offering Incentives for Workers Who Participate In or Complete Wellness Programs, Maximum Annual Value of the Reward for.

Ticket out the Door Quiz

11.2 Compare & Order Integers

Exhibit 6.20 Distribution of the Percentage of Total Premium Paid by Covered Workers for Single and Family Coverage, by Firm Wage Level, 2016 SINGLE COVERAGE.

Welcome to Who Wants to be a Winner?.

Exhibit 6.18 Distribution of the Percentage of Total Premium Paid by Covered Workers for Single and Family Coverage, by Wage Level, 2013 SINGLE COVERAGE.

Low Wage Level* Few Workers Are Lower-Wage

Lower Wage Level Less Than 35% Earn $23,000 a Year or Less *

Exhibit 6.19 Distribution of the Percentage of Total Premium Paid by Covered Workers for Single and Family Coverage, by Wage Level, 2014 SINGLE COVERAGE.

Presentation transcript:

1 Tournament Pay In this section we consider thinking about pay at firms as being similar to what happens at a sports tournament.

2 Years on Job – Job Tenure $ Tom Dick Harry All three here Just Harry and Dick

3 On the previous screen we see the earnings profile of three workers. They all started at the same time and they all have increases in pay over their working life. At the beginning the each make the same, but then their pay diverges. Harry’s pay outpaces the other two. The story is that Tom, Dick and Harry are in a tournament to get promotions within the firm. The winner at each stage of the tournament gets the higher bump in pay. Implication Perhaps high CEO pay is an incentive to get lower level managers to strive to be a CEO. We need CEO’s right? Lots of work though. How do you get people to work a lot? Pay them. Maybe the pay is higher than their current productivity, but the pay was needed to get them to work and gain skills and knowledge along the way.