Chapter 27

The New Economy and Forms of Compensation
M.A. Klinedinst (University of Southern Mississippi)

An introduction to compensation forms found in the “new economy” will be discussed in the first section and then why compensation matters for productivity growth. After the theoretical section, we will look at practical examples and anecdotal evidence. Next we will investigate the econometric results that penetrate the complex factors that make firms productive. Following the presentation of the econometric evidence, we will summarize and then discuss the policy implications.