Sunday, September 06, 2009

Gresham's Law in the Labor Market

Does the bad chase away the good? Suppose that I work on the assembly line and one worker can't do their job. Assume that everyone on the line is disciplined for the actions of one. Would the productive workers have the incentive to quit and work for a company that polices the productivity of every worker? I think so. A prospective employee would do good to look at employee turnover before accepting a position.
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