Intrinsic Motivation and Real Individual Piecewise Linear Wages
Marie-Christine Thaize Challier
DOI: 10.4236/me.2011.23038   PDF    HTML     6,555 Downloads   10,675 Views   Citations


This paper presents a simple framework for understanding the prevalence of basic piecewise linear wages in the real world. It extends the analysis of individual piecewise linear wages to environments in which the participation constraint is reinforced by intrinsic motivations. It identifies a class of “acceptable” piecewise linear wages verifying both this reinforced participation constraint and the adverse selection constraint. Among them, it restricts the characterization to a class of real-world wages. Through the advantages and drawbacks of certain acceptable piecewise linear wages, it helps explaining why they are common in the real world even if they are not optimal.

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M. Challier, "Intrinsic Motivation and Real Individual Piecewise Linear Wages," Modern Economy, Vol. 2 No. 3, 2011, pp. 344-353. doi: 10.4236/me.2011.23038.

Conflicts of Interest

The authors declare no conflicts of interest.


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