Chapter 12: Personnel Economics

Personnel economics is the application of economic and mathematical approaches to traditional topics in the study of human resource management. This includes such topics as compensation, turnover, and incentives that are inherently economic, as well as those that do not at first appear to be economic topics (e.g., norms, teamwork, worker empowerment, and peer relationships). Using the tools from advances in game theory, information economics, econometrics, and other areas of economics, personnel economics has come a long way over the past few decades. It now produces a large share of the labor economics literature, has earned its own code in…