Variable pay creates a link between pay and performance but may also help firms in attracting more productive employees. Our experiment investigates the impact of performance pay on both incentives and sorting and analyzes the influence of repeated interactions between firms and employees on...

Earlier studies of the impact of performance pay on individuals’ behavior have primarily been concerned with the effects on their earnings and productivity. The productivity increases associated with the adoption of performance pay practices may, however, come at the expense of quality of life...

The two key predictions of hedonic wage theory are that there is a trade-o¤ between wages and nonmonetary rewards and that the latter can be used as a sorting device by …rms to attract and retain the kind of employees they desire. Empirical analysis of these topics are scarce as they require...

Besides wage offers, credentials like education, work experience and skill requirements are key screening tools for firms in their recruitment of new employees. This paper contributes some new evidence to a relatively tiny literature on firms’ recruitment behaviour. In particular, our analysis...

The purpose of this paper is to test some predictions from the literature concerning firms' choices of methods of pay for their managerial employees, and to provide estimates of the effects of performance pay on individual productivity using individual earnings as a mesure of productivity.

This paper describes the spread of new work and pay practices in Danish private sector firms during the last two decades. The data source is two surveys directed at firms and carried out ten years apart. The descriptive analysis shows that large changes in the way work is organized in firms have...

Assuming that people care not only about what others do but also on what others think, we study respect as a non-monetary source of motivation in a context where the length of the employment relationship is endogenous. In our three-stage gift-exchange experiment, the employer can express respect...

I am grateful to Dansk Management Forum for providing me the data used in the paper, to the Danish Social Science Research Council for financial support, and to Jingkun Li for useful research assistance. An earlier version of the paper was presented at the 2002 Academy of International Business...

Wage mobility among low wage earners has previously been focussing on the <p> characteristics of the low wage earners, whereas the role of the firm has been neglected. The <p> purpose of this study is to focus on the characteristics of the firms when analysing variation in <p> wage mobility. The...</p></p></p>