Evidence on performance pay and risk aversion
Making use of a unique representative data set, we find clear evidence that risk aversion has a highly significant and substantial negative impact on the probability that an employee's pay is performance contingent, which confirms the well known risk-incentive trade-off.
Year of publication: |
2010
|
---|---|
Authors: | Grund, Christian ; Sliwka, Dirk |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 106.2010, 1, p. 8-11
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Publisher: |
Elsevier |
Keywords: | Agency theory Incentives Pay for performance Risk Risk aversion |
Saved in:
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