There is a debate on whether executive pay reflects rent extraction due to “managerialpower” or is the result of arms-length bargaining in a principal-agent framework. In this paperwe offer a test of the managerial power hypothesis by empirically examining the CEOcompensation of U.S. public...

The potentially adverse labor market effects of severance pay mandates are a continuingsource of policy concern. In a seminal study, Lazear (1990) found that contract avoidance ofseverance pay firing costs was theoretically simple – a bonding scheme would do – but thatempirically the labor...

We study compensation packages in family and non-family firms. Using matched employeremployeedata for a representative sample of French establishments, we first show thatfamily firms pay on average lower wages to their workers. We find that part of this wage gapis due to differences in...

We study how workers’ wages respond to TFP-driven innovations in firms’ labor productivity.Using unique data with highly reliable firm-level output prices and quantities in themanufacturing sector in Sweden, we are able to derive measures of physical (as opposed torevenue) TFP to instrument...

We empirically investigate the impact of incentive scheme structure on the degree ofcooperation in firms using a unique and representative data set. Combining employee surveydata with detailed firm level information on the relative importance of individual, team, andcompany performance for...

This chapter reviews the literature on employment and labor law. The goal of the review is tounderstand why every jurisdiction in the world has extensive employment law, particularlyemployment protection law, while most economic analysis of the law suggests that lessemployment protection would...

We report the first results for Korean firms on the incidence, diffusion, scope and effects ofdiverse employee financial participation schemes, such as Profit Sharing Plans (PSPs),Employee Stock Ownership Plans (ESOPs), Stock Option Plans (SOPs) and Team IncentivePlans (TIPs). In do doing, we...

We combine profit sharing and outsourcing, if the wage for worker is decided by a labor unionto analyze how does the implementation of profit sharing affect individual effort and thebargained wage and thus outsourcing? We find that profit sharing and the wage level havean individual...