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Morale hazard
We interpret workers’ confidence in their own skills as their morale, and investigate the implication of worker overconfidence on the firm’s optimal wage-setting policies. In our model, wage contracts both provide incentives and affect worker morale, by revealing private information of the firm about worker skills. We provide conditions for the non-differentiation wage policy to be profit-maxim...
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ژورنال
عنوان ژورنال: Psychological Review
سال: 1902
ISSN: 0033-295X
DOI: 10.1037/h0063999