If initially an individuals' compensation is less than their productivity but the reverse is true, the individual

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If an individual's productivity exceeds their compensation, they have an incentive to stay with the firm. This is because they are being paid less than their worth, and therefore have room for their compensation to increase while still benefiting the firm with their high productivity. Leaving the firm would not necessarily solve the issue, as they may not receive a better offer elsewhere. Free-riding is unrelated to this scenario, as they are already productive and not taking advantage of the efforts of others.

If Initially an Individuals' Compensation Is Less Than Their Productivity