The paper focuses on the impact of altruism in the workplace. It examines how altruism among co-workers affects the performance of effort-enhancing incentive schemes and the firm's profits. Drawing on Rotemberg's work, the author outlines a model to explain the fact that firms rarely adopt pay schemes based on worker competition.
Mutual Concern, Workplace Relationships and Pay scales
CHILLEMI, OTTORINO
2005
Abstract
The paper focuses on the impact of altruism in the workplace. It examines how altruism among co-workers affects the performance of effort-enhancing incentive schemes and the firm's profits. Drawing on Rotemberg's work, the author outlines a model to explain the fact that firms rarely adopt pay schemes based on worker competition.
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