This paper experimentally investigates the impact of different pay and relative performance information policies on employee effort. We explore three information policies: No feedback about relative performance, feedback given halfway through the production period, and continuously updated...

This paper develops a framework for studying individuals ideas about what constitutes justcompensation for chief executive officers (CEOs) and reports estimates of just CEO pay andthe principles guiding ideas of justice. The sample consists of students pursuing a Master ofBusiness Administration...

This paper uses matched employer-employee panel data to show that individual jobsatisfaction is higher when other workers in the same establishment are better-paid. Thisruns contrary to a large literature which has found evidence of income comparisons insubjective well-being...

The Peter Principle captures two stylized facts about hierarchies: first, promotions often placeemployees into jobs for which they are less well suited than for that previously held. Second,demotions are extremely rare...

We document that an increasing fraction of jobs in the U.S. labor market explicitly payworkers for their performance using bonuses, commissions, or piece-rates. We find thatcompensation in performance-pay jobs is more closely tied to both observed (by theeconometrician) and unobserved productive...

Many previous studies try to discover job preferences by directly asking individuals. Since itis not sure, whether answers to these surveys are relevant for actual behaviour, this empiricalexamination offers a new approach based on representative German data. Employees whoquit their job and find...

This paper explores theoretically and empirically potentially important yet often-neglectedlinkage between task coordination within the organization and the structure of organizationand bundling of HRMPs (Human Resource Management Practices). In so doing, we alsoprovide fresh insights on the...

We investigate the effects of works councils on employees’ wages and job satisfaction ingeneral and for subgroups with respect to sex and occupational status. Making use of aGerman representative sample of employees, we find that employees, who move to a firmwith a works council, report...

We empirically explore the relevance of risk taking behavior in tournaments. We make use ofdata from the NBA season 2007/2008 and measure risk taking by the fraction of three-pointshots. Current heterogeneity of teams is taken into account by intermediate results. It turnsout that indeed teams...