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ECN 340 (22)
Chapter

Why your boss is overpaid.docx
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Department
Economics
Course
ECN 340
Professor
Thomas Barbiero
Semester
Fall

Description
Harford book Chapter four: Why your boss is overpaid\ Incentives to work harder  The new bosses of the Safelite Glass Corporation wanted to speed things up  Productivity at Safelite soared under the new piece rate system, with work per worker increasing by nearly 50%  Workers tried harder, slow ones quit, quality of product increased, number of botched jobs fell, more skilled workers made much more money and stayed with the firm  For most jobs, it is not easy to measure performance and pay accordingly  example: you can't check whether a FedEx courier is smiling at customers even you can track the package  Such measuring problems make it very difficult for managers to assess performance  sometimes there is just no way to tell the difference between a brilliant worker and a lazy charlatan  Mas and Moretti tried to find out if people worked harder is surrounded but productive colleagues, they studied the performance of checkout counters worke
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