Return   Go on

9.2 Performance evaluation within one profession

My model of the labor market dealt specifically with how the evaluation of qualitatively different jobs in different professions is possible according to objective criteria. Hereby it was assumed that performance within an occupation can be measured. This is the case in some professions. In many other professions, however, this is difficult. These are especially the professions where creative intellectual work is done. Unfortunately, at the moment I can't imagine anything more than that on average correct evaluations are carried out through many subjective individual evaluations in the context of bilateral negotiations between management and employees. But these subjective individual evaluations hold the risk that if there is an asymmetry in economic power, which usually is in favour of the management of a company facing an individual worker, the performance evaluation drifts downwards, and with it the wages as well. So reliable social mechanisms must be installed that maintain the average wage level.

Return   Go on