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Long-Term Employment Relations when Agents are Present Biased
Englmaier, Florian; Fahn, Matthias; Schwarz, Marco A. - 2016
We analyze how agents’ present bias affects optimal contracting in an infinite-horizon employment setting. The principal maximizes profits by offering a menu of contracts to naive agents: a virtual contract - which agents plan to choose in the future - and a real contract which they end up...
Persistent link: https://www.econbiz.de/10011584858
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Pay Transparency Under Subjective Performance Evaluation
Fahn, Matthias; Zanarone, Giorgio - 2021
This paper studies how pay transparency affects organizations that reward employees based on their efforts (i.e., using “subjective performance evaluation”). First, we show that transparency triggers social comparisons that require the organization to pay its employees an “envy premium”....
Persistent link: https://www.econbiz.de/10012492995
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Pay Transparency Under Subjective Performance Evaluation
Fahn, Matthias; Zanarone, Giorgio - 2021
This paper studies how pay transparency affects organizations that reward employees based on their efforts (i.e., using “subjective performance evaluation”). First, we show that transparency triggers social comparisons that require the organization to pay its employees an “envy premium”....
Persistent link: https://www.econbiz.de/10013250033
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Reciprocity in dynamic employment relationships
Fahn, Matthias - 2019
This paper explores how a relational contract establishes a norm of reciprocity and how such a norm shapes the … that activate the norm of reciprocity are more important when an employee is close to retirement. In earlier stages, direct … employer’s commitment. Generally, direct and reciprocity-based incentives reinforce each other and should thus optimally be …
Persistent link: https://www.econbiz.de/10012018325
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Reciprocity in Dynamic Employment Relationships
Fahn, Matthias - 2020
(which activate the norm of reciprocity) interact over the course of an employee’s career. I show that firms can benefit from … its promises. Moreover, I demonstrate that more intense competition for workers can intensify the use of reciprocity …
Persistent link: https://www.econbiz.de/10012269484
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What Drives Reciprocal Behavior? The Optimal Provision of Incentives over the Course of Careers
Fahn, Matthias; Schade, Anne; Schüßler, Katharina - 2017
We explore how inherent preferences for reciprocity and repeated interaction interact in an optimal incentive system … rents can be used to provide incentives. Preferences for reciprocity still affect the structure of an employment … relationship early on, though, because of two reasons: first, preferences for reciprocity effectively reduce the employee’s effort …
Persistent link: https://www.econbiz.de/10011744941
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Reciprocity in Dynamic Employment Relationships
Fahn, Matthias - 2019
This paper explores how a relational contract establishes a norm of reciprocity and how such a norm shapes the … that activate the norm of reciprocity are more important when an employee is close to retirement. In earlier stages, direct … employer’s commitment. Generally, direct and reciprocity-based incentives reinforce each other and should thus optimally be …
Persistent link: https://www.econbiz.de/10012870637
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Reciprocity in Dynamic Employment Relationships
Fahn, Matthias - 2020
(which activate the norm of reciprocity) interact over the course of an employee's career. I show that firms can benefit from … its promises. Moreover, I demonstrate that more intense competition for workers can intensify the use of reciprocity …
Persistent link: https://www.econbiz.de/10012828785
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Outside Options and Worker Motivation
Ahammer, Alexander; Fahn, Matthias; Stiftinger, Flora - 2023
We study the relationship between outside options and workers' motivation to exert effort. We evaluate changes in outside options arising from age and experience cutoffs in the Austrian unemployment insurance (UI) system, and use absenteeism as a proxy for worker effort. Results indicate that a...
Persistent link: https://www.econbiz.de/10014377555
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When Protection Becomes Exploitation: The Impact of Firing Costs on Present-Biased Employees
Englmaier, Florian; Fahn, Matthias; Glogowsky, Ulrich; … - 2023
Employment protection harms early-career employees without benefitting them in later career stages (Leonardi and Pica, 2013). We demonstrate that this pattern can result from employers exploiting naïve present-biased employees. Employers offer a dynamic contract with low early-career wages, an...
Persistent link: https://www.econbiz.de/10014469815