Huck, Steffen; Seltzer, Andrew J.; Wallace, Brian - In: American Economic Review 101 (2011) 2, pp. 819-43
This paper provides the first experimental test of Edward Lazear's (1979) model of deferred compensation. We examine the relationship between firms' wage offers and workers' effort supply in a multi-period environment. If firms can ex ante commit to a wage schedule with deferred compensation,...