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Rank-Order Tournaments as Optimum Labor Contracts

Lazear, Edward P.; Rosen, Sherwin - 2021

This paper analyzes compensation schemes which pay according to an individual's ordinal rank in an organization rather than his output level. When workers are risk neutral, it is shown that wages based upon rank induce the same efficient allocation of resources as an incentive reward scheme...

Persistent link: https://www.econbiz.de/10013248434

Incentives and Wage Rigidity

Lazear, Edward P. - 2021

With the growth of the literature on incentive compensation has come the belief by some that incentive pay may be less rigid than pay that is not designed to effect incentives. Some have gone so far as to argue that this may explain differences in unemployment rates across countries. it is shown...

Persistent link: https://www.econbiz.de/10013218839

The Peter Principle : Promotions and Declining Productivity

Lazear, Edward P. - 2021

Many have observed that individuals perform worse after having received a promotion. The most famous statement of the idea is the Peter Principle, which states that people are promoted to their level of incompetence. There are a number of possible explanations. Two are explored. The most...

Persistent link: https://www.econbiz.de/10013247253

Output-Based Pay : Incentives or Sorting?

Lazear, Edward P. - 2021

of the typical American firm. Variable pay is usually touted as a way to provide incentives to managers whose interests … received much attention, but that is consistent with may of the facts, is selection. Managers and industry specialists may have … information about a firm's prospects that is unavailable to outside investors. In order to induce managers to be truthful about …

Persistent link: https://www.econbiz.de/10013233852

Incentive Contracts

Lazear, Edward P. - 2021

Persistent link: https://www.econbiz.de/10013236722

The Value of Bosses

Lazear, Edward P. - 2014

How and by how much do supervisors enhance worker productivity? Using a company-based data set on the productivity of technology-based services workers, supervisor effects are estimated and found to be large. Replacing a boss who is in the lower 10% of boss quality with one who is in the upper...

Persistent link: https://www.econbiz.de/10013065643

Trade Liberalization in a Multinational-Dominated Industry : A Theoretical and Applied General-Equilibrium Analysis

Hunter, Linda - 2010

A theoretical model is developed and applied to the North American auto industry, motivated by the possibility of US-Mexico free trade. Special features of the model include (1) significant scale economies at the plant level, (2) imperfect competition among firms, (3) joint ownership of plants...

Persistent link: https://www.econbiz.de/10013139985

Environmental Policy When Market Structure and Plant Locations are Endo-Genous

Markusen, James R. - 2010

A two-region, two-firm model is developed in which firms choose the number and the regional locations of their plants. Both firms pollute and, in this context, market structure is endogenous to environmental policy. There are increasing returns at the plant level, imperfect competition between...

Persistent link: https://www.econbiz.de/10013141089

Per-Capita Income as a Determinant of International Trade and Environmental Policies

Markusen, James R. - 2013

International trade policy analysis has tended to focus on the production side of general equilibrium, with policies such as a tariff or carbon tax affecting international and internal income distributions through a Heckscher-Ohlin nexus of factor intensities and factor endowments. Here I move...

Persistent link: https://www.econbiz.de/10013071509

International Welfare and Employment Linkages Arising from Minimum Wages

Egger, Hartmut - 2010

We formulate a two-country model with monopolistic competition and heterogeneous firms to reconsider labor market linkages in open economies. Labor-market imperfections arise by virtue of country-specific real minimum wages. Two principal experiments are considered. First, we show that trade...

Persistent link: https://www.econbiz.de/10013151811