as a wage determinant. We furthermore show that a promotion affects both intrinsic and extrinsic motivation significantly …, though in two different ways: An expected promotion increases extrinsic motivation whereas intrinsic motivation is highest … subsequent to a realized promotion. The relationship between extrinsic motivation and expected promotions implies that promotions …

We study the Lemons Problem when workers have private information on both their skills and their intrinsic motivation … adverse selection are mitigated. More interestingly, depending on the association between productivity and motivation, higher … two counterintuitive effects can only occur when a positive correlation exists between productivity and motivation. Our …