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Hidden Insurance in a Moral Hazard Economy

Bertola, Giuseppe; Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2013

We consider an economy where individuals privately choose effort and trade competitively priced securities that pay off with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then standard functional form restrictions ensure that...

Persistent link: https://www.econbiz.de/10010722701

Education and Optimal Dynamic Taxation

Findeisen, Sebastian; Sachs, Dominik - Institute for the Study of Labor (IZA) - 2011

optimum. In one implementation there is a common labor income tax schedule, and a repayment schedule for government loans …

Persistent link: https://www.econbiz.de/10009359855

Hidden Action, Identification, and Organization Design

Schnedler, Wendelin - Institute for the Study of Labor (IZA) - 2010

Incentives often fail in inducing economic agents to engage in a desirable activity; implementability is restricted. What restricts implementability? When does re-organization help to overcome this restriction? This paper shows that any restriction of implementability is caused by an...

Persistent link: https://www.econbiz.de/10008727777

Some Practical Guidance for the Implementation of Propensity Score Matching

Caliendo, Marco; Kopeinig, Sabine - Institute for the Study of Labor (IZA) - 2005

researcher has decided to use PSM, he is confronted with a lot of questions regarding its implementation. To begin with, a first …. Each implementation step involves a lot of decisions and different approaches can be thought of. The aim of this paper is … to discuss these implementation issues and give some guidance to researchers who want to use PSM for evaluation purposes. …

Persistent link: https://www.econbiz.de/10005703025

Reputations, Relationships and the Enforcement of Incomplete Contracts

MacLeod, W. Bentley - Institute for the Study of Labor (IZA) - 2006

incomplete contract. It is shown that the efficiency of these solutions is very sensitive to the characteristics of the good or …

Persistent link: https://www.econbiz.de/10005233793

Do Foreign Owners Favor Short-Term Profit? Evidence from Germany

Dill, Verena; Jirjahn, Uwe; Smith, Stephen C. - Institute for the Study of Labor (IZA) - 2014

Comparing domestic- and foreign-owned firms in Germany, this paper finds that foreign-owned firms are more likely to focus on short-term profit. This influence is particularly strong if the local managers of the German subsidiary are not sent from the foreign parent company. Moreover, the...

Persistent link: https://www.econbiz.de/10010884296

Wage-Hours Contracts, Overtime Working and Premium Pay

Hart, Robert A.; Ma, Yue - Institute for the Study of Labor (IZA) - 2008

This paper offers a contract-based theory to explain the determination of standard hours, overtime hours and overtime … premium pay. We expand on the wage contract literature that emphasises the role of firm-specific human capital and that … explores problems of contract efficiency in the face of information asymmetries between the firm and the worker. We first …

Persistent link: https://www.econbiz.de/10005233734

Performance Pay, Sorting, and Outsourcing

Sousa-Poza, Alfonso; Henneberger, Fred; Ziegler, Alexandre - Institute for the Study of Labor (IZA) - 2007

Implementing performance pay requires that workers' output be measured. When measurement costs differ among firms, those with a measurement cost advantage choose to implement performance pay. They attract the best workers, and both the level and variability of compensation are higher at these...

Persistent link: https://www.econbiz.de/10005703403

How Often Should You Open the Door? Optimal Monitoring to Screen Heterogeneous Agents

Ichino, Andrea; Muehlheusser, Gerd - Institute for the Study of Labor (IZA) - 2004

This paper shows that monitoring too much a partner in the initial phase of a relationship may not be optimal if the goal is to determine his loyalty to the match and if the cost of ending the relationship increases over time. The intuition is simple: by monitoring too much we learn less on how...

Persistent link: https://www.econbiz.de/10005703754

Competition, Cooperation, and Corporate Culture

Kosfeld, Michael; Siemens, Ferdinand von - Institute for the Study of Labor (IZA) - 2007

Teamwork and cooperation between workers can be of substantial value to a firm, yet the level of worker cooperation often varies between individual firms. We show that these differences can be the result of labor market competition if workers have heterogeneous preferences and preferences are...

Persistent link: https://www.econbiz.de/10005703792