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Consider a firm where the marginal product of the typical worker varies over time according to the schedule in Table 11-5 where year 0 represents
Consider a firm where the marginal product of the typical worker varies over time according to the schedule in Table 11-5 where year 0 represents the current year. In order to motivate its workers to exert their best efforts, suppose this firm plans to sequence the pay in such a way that workers receive less than their marginal product early in their career, and then more than their marginal product toward the end of their career. Explain how such a pay scheme is thought to bring about increases in worker productivity
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