You are considering two job offers. Company A is well known and respected and offers a year-end

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You are considering two job offers. Company A is well known and respected and offers a year-end bonus based on your productivity relative to other workers. This could substantially boost your income but the company’s base wage is relatively low.

Company B is not as well known, but its wages are higher than the norm in your field.

This company does not offer a year-end bonus.

QUESTION: Which company, A or B, is the efficiency wage employer?

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Related Book For  book-img-for-question

Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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