Showing 1 - 10 of 1,407
The Peter Principle captures two stylized facts about hierarchies: first, promotions often place employees into jobs for which they are less well suited than for that previously held. Second, demotions are extremely rare. Why do organizations not correct ‘wrong’ promotion decision? This...
Persistent link: https://www.econbiz.de/10005703071
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
We model the sorting of medical students across medical occupations and identify a mechanism that explains the possibility of differential productivity across occupations. The model combines moral hazard and matching of physicians and occupations with pre-matching investments. In equilibrium...
Persistent link: https://www.econbiz.de/10005703622
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 … off. Moreover, in both pay schemes information feedback reduces the quality of the low performers’ work. …
Persistent link: https://www.econbiz.de/10005703358
information on the value of the IV. This leads to violation of the exclusion restriction. We analyze this in a dynamic economic …
Persistent link: https://www.econbiz.de/10005763520
This paper studies the influence of information on entry choices in a competition with a controlled laboratory … experiment. We investigate whether information provision attracts mainly high productivity individuals and reduces competition … productivity. Information on the opponent is a promising nudge to raise individuals' awareness towards the complexity of the …
Persistent link: https://www.econbiz.de/10011279246
outcomes. We proxy occupational knowledge with mandatory visits to job information centers (JICs) in Germany while still … the comprehensive information service when they were young. The results suggest that individuals, who went to school in …
Persistent link: https://www.econbiz.de/10010761636
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
Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In this paper, however, we demonstrate that this may not hold in team settings. In the context of sequential team production with positive externalities between agents, incentive...
Persistent link: https://www.econbiz.de/10008839289
The importance of fair and equal treatment of workers is at the heart of the debate in organizational management. In this regard, we study how reward mechanisms and production technologies affect effort provision in teams. Our experimental results demonstrate that unequal rewards can potentially...
Persistent link: https://www.econbiz.de/10005566518