talented workers leads to an escalating reliance on performance pay and other high-powered incentives, thereby shifting effort … distorts incentives downward in order to extract rents. More generally, as declining market frictions lead employers to compete …, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

This paper studies the interplay between economic incentives and social norms in firms. We introduce a general … also show how social norms can induce multiplicity of equilibria and how steeper economic incentives can reduce effort. …

During the last two decades economists have made much progress in understanding incentives, contracts and organisations … effects of incentives. Economists may fail to understand the levels and the changes in behaviour if they neglect motives like … the desire to reciprocate or the desire to avoid social disapproval. We show that monetary incentives may backfire and …

that increase the incentives of relatively more able workers, heterogeneity is unlikely to be as detrimental as commonly … perceived for incentives in organizations with multiple hierarchy levels. Heterogeneity of the workforce may even be optimal …This paper shows that the incentive effects of heterogeneity may be positive rather than negative in dynamic contests …

This paper is an empirical study of slope heterogeneity in job satisfaction. It provides evidence from the generalized …