In this review of the personnel economics literature, we introduce key topics of
personnel economics, focus on some relatively new findings that have emerged since
prior reviews of some or all of the personnel economics literature, and suggest open
questions in personnel economics where future research can make valuable contributions
to the literature. We explore five aspects of the employment relationship - incentives,
matching firms with workers, compensation, skill development, and the organization
of work - reviewing the main theories, empirical tests of those theories, and the
open questions in each area.