Théorie Rélative De La Monnaie

The recruitment of PMC has a an ample supply. It is common for companies to employ workers from around the world, and these employees fall into three categories.The first category is expatriates, generally (but not always) those employees that are from the same country as the company. The second category is local nationals (LNs) or host-country nationals (HCNs) that are from the country where the operation is taking place, i.e., Iraqi nationals working in Iraq. The third category is third-country

nationals (TCN) tshat are from a country that is neither the same country as the company nor the country where the operation is taking place. Host-country nationals are hired by 96 percent of respondent companies, demonstrating that the policy to hire employees from the local population is heavily ingrained in the peace and stability operations industry. While some companies responded that over 95 percent of their employees are HCNs, on average HCNs constituted 59.67 percent of the staff of respondent companies. These figures have changed little since the 2006 Survey, where 93 percent of respondent companies reported that their policy is to recruit HCNs, and of those companies, 56 percent of employees were HCNs.

Third-country nationals are hired by 74 percent of respondent companies. At the low-end, one company responded that only two percent of their employees are TCNs, while at the high-end, one company responded that 95 percent of their employees are TCNs. Among respondent companies, on average, TCNs

constituted 29.82 percent of their staff. In the 2006 Survey, there was no differentiation between expatriate and TCN staff, so comparison is awkward. However, in 2006 respondent companies reported that on average, 44 percent of their staff were a combination of expatriates and TCNs.

Talking about the compensation, we have to say that Xe can be in a efficiency wages case, but first of all, we have to highlight some data. We must take into account, that the unique similar job that PMC employees can found in the market are the government armies. In the US Army, the salary of a soldier in the lowest rank who has one year's service is $15,480 a year, the pay for an experienced corporal of three years of service is $19,980 a year, approximately, so we are talking about a median of $17,730 a year in the US Army. In the case of the PMC's, the government pays private firms between $500 and $1,500 a day for the experienced military personnel they supply in Iraq. This means that mercenaries can earn between $150,000 and $250,000 a year, so here the median is $200,000 a year. To be more specific, there are mercenaries making more than Genera Tommy Franks, who commanded the US armed forces in Iraq's war. With more than 36 years of service, Frank's annual base pay was $153,948. So, as we can observe, the PMC salaries are significantly higher than the US army salaries, which we can consider the market wages. All this data is useful to conclude that Xe and the other PMC's are in a efficiency wages case, which means that the company pay his workers above the market level because the cost of losing the job increases, and this is translated in a way of working more efficiently, without negative actions because the employees are afraid of losing his jobs. This also means that if the time horizon increases, workers will tend to tell the truth, so there are more opportunity costs.