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Can Contracts Signal Social Norms? Experimental Evidence

Danilov, Anastasia; Sliwka, Dirk - Institute for the Study of Labor (IZA) - 2013

We investigate whether incentive schemes signal social norms and thus affect behavior beyond their direct economic consequences. A principal-agent experiment is studied in which prior to contract choice principals are informed about past actions of other agents and thus have more information...

Persistent link: https://www.econbiz.de/10010884174

Ethnicity, Assimilation and Harassment in the Labor Market

Epstein, Gil S.; Gang, Ira N. - Institute for the Study of Labor (IZA) - 2008

We often observe minority ethnic groups at a disadvantage relative to the majority. Why is this and what can be done about it? Efforts made to assimilate, and time, are two elements working to bring the minority into line with the majority. A third element, the degree to which the majority...

Persistent link: https://www.econbiz.de/10005233855

Bonus Culture: Competitive Pay, Screening, and Multitasking

Benabou, Roland; Tirole, Jean - Institute for the Study of Labor (IZA) - 2013

This paper analyzes the impact of labor market competition and skill-biased technical change on the structure of compensation. The model combines multitasking and screening, embedded into a Hotelling-like framework. Competition for the most talented workers leads to an escalating reliance on...

Persistent link: https://www.econbiz.de/10010635587

Interactions between Local and Migrant Workers at the Workplace

Epstein, Gil S.; Mealem, Yosef - Institute for the Study of Labor (IZA) - 2010

In this paper we consider the interaction between local workers and migrants in the production process of a firm. Both local workers and migrants can invest effort in assimilation activities in order to increase the assimilation of the migrants into the firm and thereby increase their...

Persistent link: https://www.econbiz.de/10008466022

A Behavioral Account of the Labor Market: The Role of Fairness Concerns

Fehr, Ernst; Goette, Lorenz; Zehnder, Christian - Institute for the Study of Labor (IZA) - 2008

incompleteness and relational nature of most employment contracts and (ii) the existence of reference-dependent fairness concerns …

Persistent link: https://www.econbiz.de/10005762059

How Do Informal Agreements and Renegotiation Shape Contractual Reference Points?

Fehr, Ernst; Hart, Oliver; Zehnder, Christian - Institute for the Study of Labor (IZA) - 2011

Previous experimental work provides encouraging support for some of the central assumptions underlying Hart and Moore (2008)’s theory of contractual reference points. However, existing studies ignore realistic aspects of trading relationships such as informal agreements and ex post...

Persistent link: https://www.econbiz.de/10009371874

Authority and Incentives in Organizations

Kräkel, Matthias - Institute for the Study of Labor (IZA) - 2013

The paper analyzes how the choice of organizational structure leads to the best compromise between controlling behavior based on authority rights and minimizing costs for implementing high efforts. Concentrated delegation and hierarchical delegation turn out to be never an optimal compromise. If...

Persistent link: https://www.econbiz.de/10010632999

Contracts as Reference Points: Experimental Evidence

Fehr, Ernst; Hart, Oliver; Zehnder, Christian - Institute for the Study of Labor (IZA) - 2008

In a recent paper, Hart and Moore (2008) introduce new behavioral assumptions that can explain long term contracts and … and, in particular, Hart and Moore's notion that contracts provide reference points. In this paper, we examine … tradeoff between rigidity and flexibility in a trading environment with incomplete contracts and ex ante uncertainty about the …

Persistent link: https://www.econbiz.de/10005763665

Ethnic Networks and International Trade

Epstein, Gil S.; Gang, Ira N. - Institute for the Study of Labor (IZA) - 2004

building trust and substituting for the difficulty of enforcing contracts internationally. The networks we are interested in …

Persistent link: https://www.econbiz.de/10005763717

A Note on Informality in the Labor Market

Khamis, Melanie - Institute for the Study of Labor (IZA) - 2009

This paper provides a detailed analysis of various dimensions of informality in the Mexican labor market. To understand the nature of informality in terms of regulations and compliance, the legalistic view, and in terms of productivity view of the labor market this paper makes an empirical...

Persistent link: https://www.econbiz.de/10008497007