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Labor Economics and the Psychology of Organizations

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  • Edward P. Lazear

Abstract

This essay is a discussion of how economists are attempting to understand institutions within the organizations of the labor market. The institutions and issues discussed include mandatory retirement; discontinuous jumps in wages; pay compression; rights of tenure; up-or-out hierarchies; timing of raises, promotions and evaluations; the existence of partnerships; the use of bonuses vs. penalties; and pay as a motivator.

Suggested Citation

  • Edward P. Lazear, 1991. "Labor Economics and the Psychology of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 89-110, Spring.
    • Handle: RePEc:aea:jecper:v:5:y:1991:i:2:p:89-110
    Note: DOI: 10.1257/jep.5.2.89
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.5.2.89
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    References listed on IDEAS

    as
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    8. Lazear, Edward P, 1989. "Pay Equality and Industrial Politics," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 561-580, June.
    9. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
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    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General

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