The hypothesis in this paper tests various wage structures and how they impact the productivity of a firm's workforce. My hypothesis is that tournament theory wage principles will yield a more productive workforce than equity theory (revenue sharing) and piece rate wage principles. In this paper I look at both theoretical and empirical evidence supporting and contradicting these three frameworks. The theoretical section of this paper looks in depth at the different variables affecting outcomes in each of the three models as well as how different workers' effort scenarios play out in the different frameworks. Data is utilized to empirically test the effects of these three models. The findings of this study show that tournament theory wage schemes potentially may lead to higher output levels by workers.
Weidrick, Zachary A., "Firm Productivity: How a Firm's Wage Structure Impacts the Productivity of It's Workforce" (2013). Senior Independent Study Theses. Paper 803.
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2013 Zachary A. Weidrick