What factors determine whether a firm offers a piece-rate or a time-rate compensation system? Discuss how workers who differ in their innate abilities sort themselves across piece-rate and time-rate jobs. Also describe how the two compensation systems elicit different levels of effort from the workers.

Answer rating: 100% (QA)

In a pricerate system workers are given compensation according to the number of units of output produced by them Produced output by the workers is tak... View the full answer