>Doug:
>> I'm always skeptical of these higher wages = higher productivity
>> arguments.
>
>
>Would not that depend on the type of work? In a taylorized workplace
>productivity is mainly a function of technology rather than the skill or
>motivation of human operators - so motivating labor force with pay
>incentives has little effect on productivity.
>
>But in a non-taylorized environment, especially one that requires cognitive
>skills, it is a different story. If employees do not have the required
>skills, paying them more will probably have little effect on increasing
>productivity. However, lower wages may provide disincentive to people with
>skills, so they can actually lower productivity by negative selection of the
>workforce.
Yup, I agree with that. I don't buy the argument for Wal-Mart-style retail though.
Doug