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Import Competition, Heterogeneous Preferences of Managers, and Productivity

Chen, Cheng - 2020

may then force managers to improve the productivity of the firm in order to ensure survival. While this hypothesis has …When managers have objectives beyond maximizing monetary profits, inefficiencies may arise. An increase in competition … received ample theoretical attention, empirical evidence is scarce, mainly because preferences of managers are typically …

Persistent link: https://www.econbiz.de/10012843433

Time limits on welfare use under involuntary unemployment

Holzner, Christian; Meier, Volker; Werding, Martin - 2004

The impacts of introducing or tightening time limits on welfare use are studied in an efficiency wage model. Those losing access to regular benefits receive some smaller benefit, which can be interpreted as food stamps. Stricter time limits raise both employment and profits and generally reduce...

Persistent link: https://www.econbiz.de/10010261217

An Efficiency-Wage Model with Habit Concerns About Wages

Goerke, Laszlo - 2020

short-lived productivity shocks have long-lasting wage and employment consequences. Moreover, habit concerns by firm owners …

Persistent link: https://www.econbiz.de/10012828115

Efficiency Wages with Motivated Agents

Armouti-Hansen, Jesper - 2020

Many organizations nowadays combine profits with a social mission. This paper reveals a new hidden benefit of the mission: its role in facilitating the emergence of efficiency wages. We show that in a standard gift-exchange principals highly underestimate agents' reciprocity and, thereby, offer...

Persistent link: https://www.econbiz.de/10012825994

What explains the rise in CEO pay in Germany? A panel data analysis for 1977-2009

Fabbri, Francesca; Marin, Dalia - 2012

work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in … difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has …

Persistent link: https://www.econbiz.de/10010281035

Attention-Driven Demand for Bonus Contracts

Dertwinkel-Kalt, Markus - 2019

In many markets supply contracts include a series of small, regular payments made by consumers and a single, large bonus that consumers receive at some point during the contractual period. But, if for instance its production costs exceed its value to consumers, such a bonus creates...

Persistent link: https://www.econbiz.de/10012890631

Bank Bonus Pay as a Risk Sharing Contract

Efing, Matthias - 2019

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that make external financing costly, the optimal contract between shareholders and employees involves some degree of risk sharing whereby bonus pay partially absorbs earnings shocks....

Persistent link: https://www.econbiz.de/10012892088

Cross-Country Evidence on Teacher Performance Pay

Woessmann, Ludger - 2010

The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international...

Persistent link: https://www.econbiz.de/10013139418

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

The Perks of Being in the Smaller Team : Incentives in Overlapping Contests

March, Christoph - 2020

We investigate overlapping contests in multi-divisional organizations in which an individual's effort simultaneously determines the outcome of several contests on different hierarchical levels. We show that individuals in smaller units are advantaged in the grand (organization-wide) contest for...

Persistent link: https://www.econbiz.de/10012845683