Personnel Economics

Personnel economics (JEL M5) cover the economic analysis of employment relationships within firms.

Scope

It includes incentives and compensation, hiring and promotion, performance pay, and the internal organization of labour.

Sub-topics

• General
• Firm Employment Decisions • Promotions
• Compensation and Compensation Methods and Their Effects
• Training
• Labor Management
• Labor Contracting Devices
• Other

Core questions

• How should firms structure pay and incentives?
• How are hiring and promotion decisions made?
• How do internal labour markets work?

Key concepts

• Incentives
• Compensation and performance pay
• Internal labour markets
• Promotion
• Principal-agent problem

Frequently asked questions

What is personnel economics?

The application of economic analysis to firms' management of employees — incentives, pay, hiring, and promotion.