Self Directed Productivity Investment on the Job

30 Pages Posted: 7 Feb 2023

See all articles by Anthony M. Marino

Anthony M. Marino

University of Southern California - Marshall School of Business

Date Written: January 28, 2023

Abstract

This paper considers a hidden action agency model in which an agent can be incentivized to simultaneously work and exert effort to invest in human capital or process innovation so as to increase productivity in a future period. We characterize the conditions under which the principal would and would not want to incentivize such multitasking, and the conditions under which the agent would want to participate. The firm's support is linked to the outside market, and a separate contingent payment for productivity increase is examined.

Keywords: Training, Productivity Investment

JEL Classification: L20, L21, L22, and L23

Suggested Citation

Marino, Anthony M., Self Directed Productivity Investment on the Job (January 28, 2023). Available at SSRN: https://ssrn.com/abstract=4350375 or http://dx.doi.org/10.2139/ssrn.4350375

Anthony M. Marino (Contact Author)

University of Southern California - Marshall School of Business ( email )

Dept. of Finance & Business Economics
Los Angeles, CA 90089
United States
213-740-6525 (Phone)
213-740-6650 (Fax)

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