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Friebel, Guido; Raith, Michael - Institute for the Study of Labor (IZA) - 2006

We develop a theory of firm scope in which integrating two firms into one facilitates the allocation of resources, but leads to weaker incentives for effort, compared with nonintegration. Our theory makes minimal assumptions about the underlying agency problem. Moreover, the benefits and costs...

Persistent link: https://www.econbiz.de/10005761852

Distrust - The Hidden Cost of Control

Falk, Armin; Kosfeld, Michael - Institute for the Study of Labor (IZA) - 2004

We show experimentally that a principal’s distrust in the voluntary performance of an agent has a negative impact on the agent’s motivation to perform well. Before the agent chooses his performance, the principal in our experiment decides whether he wants to restrict the agents’ choice set...

Persistent link: https://www.econbiz.de/10005762323

Should You Allow Your Agent to Become Your Competitor? On Non-Compete Agreements in Employment Contracts

Kräkel, Matthias; Sliwka, Dirk - Institute for the Study of Labor (IZA) - 2006

We discuss a principal-agent model in which the principal has the opportunity to include a non-compete agreement in the employment contract. We show that not imposing such an agreement can be beneficial for the principal as the possibility to leave the firm generates implicit incentives for the...

Persistent link: https://www.econbiz.de/10005703004

Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics

Abeler, Johannes; Altmann, Steffen; Goerg, Sebastian; … - Institute for the Study of Labor (IZA) - 2011

In this paper, we discuss recent evidence from economic experiments that study the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such...

Persistent link: https://www.econbiz.de/10009024592

Optimal Incentive Contracts under Inequity Aversion

Englmaier, Florian; Wambach, Achim - Institute for the Study of Labor (IZA) - 2005

We analyze the Moral Hazard problem, assuming that agents are inequity averse. Our results differ from conventional contract theory and are more in line with empirical findings than standard results. We find: First, inequity aversion alters the structure of optimal contracts. Second, there is a...

Persistent link: https://www.econbiz.de/10005566722

Job Satisfaction and Self-Selection into the Public or Private Sector: Evidence from a Natural Experiment

Danzer, Natalia - Institute for the Study of Labor (IZA) - 2013

one caused by sector-specific job characteristics. A natural experiment – the massive privatization process in post …-Soviet countries – allows correcting potential self-selection bias. Industry-specific privatization probabilities are assigned to …

Persistent link: https://www.econbiz.de/10010884142

On the Reversibility of Structural Reforms

Campos, Nauro F; Horváth, Roman - Institute for the Study of Labor (IZA) - 2012

evidence showing that (a) FDI inflows reduce the likelihood of privatization reversals, (b) worsened terms of trade increase …

Persistent link: https://www.econbiz.de/10011279308

Employment and Wage Effects of Privatization: Evidence from Hungary, Romania, Russia, and Ukraine

Brown, J. David; Earle, John S.; Telegdy, Álmos - Institute for the Study of Labor (IZA) - 2008

transition economies to estimate the impacts of privatization on employment and wages. The results in all four countries … consistently reject job losses and they never imply large wage cuts from privatization to either foreign or domestic owners. The … domestic privatization estimates are close to zero for employment, while for wages they are negative but small in magnitude …

Persistent link: https://www.econbiz.de/10005233777

Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America

Campos, Nauro F.; Kinoshita, Yuko - Institute for the Study of Labor (IZA) - 2008

This paper investigates the role of structural reforms – privatization, financial reform and trade liberalization – as … financial liberalization and privatization. These results are robust to different measures of reforms, split samples, and …

Persistent link: https://www.econbiz.de/10005761719

Enterprise Restructuring in Belarus

Bakanova, Marina; Estrin, Saul; Pelipas, Igor; … - Institute for the Study of Labor (IZA) - 2006

We explore the impact of privatization and the entry of new firms on enterprise performance in Belarus, a transition …

Persistent link: https://www.econbiz.de/10005761783