Chapter 14 presentation

Chapter 14 presentation - Salar y (in dollar s) M ar ginal...

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Marginal revenue product Market wage rate Wage (in dollars) $ E* Number of employees Salary (in dollars) $ Fringe benefit (in dollar) $ Employee preferences U 2 U 1 Isocost curves $ $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ Isocost curves $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Isocost curves Salary (in dollars) -1 Isocost curves Salary (in dollars) Fringe benefits (in dollars) $ -1 $ -1 Chapter 14 Attracting and Retaining Qualified Employees Chapter Outline Contracting Objectives The Basic competitive Model Human Capital Compensating Differentials Costly information about Market Wage Rates Internal labor markets Reasons for Long-Term Employment Relationships Costs of Internal Labor Markets Pay in Internal Labor Markets Careers and Lifetime Pay Influence Costs The Salary-Fringe Benefit Mix Employee Preferences Employer Considerations The Salary-Fringe Benefit Choice Contracting Objectives o Designing compensation contracts that maximize the value of employees’ output net of costs, the firm’s value is maximized and hence both the owners of the firm and their employees can be made better off. o
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Chapter 14 presentation - Salar y (in dollar s) M ar ginal...

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