interaction with monetary incentives. We find that motivational talk significantly improves performance only if it is accompanied … by performance pay. Moreover, performance pay reduces performance unless it is accompanied by motivational talk. By … adding motivational sentences to an otherwise neutral explanation of the work task, the effect of performance pay goes from …

public sector in most EU countries, the paper looks for policy reforms that can improve work incentives, and hence enhance …

Empirically, compensation systems generate substantial effort despite weak monetary incentives. We consider reciprocal … motivations as a source of incentives. We solve for the optimal contract in the basic principal-agent problem and show that … reciprocal motivations and explicit performance-based pay are substitutes. A firm endogenously determines the mix of the two …

selection probability induce the monetary incentives in a large-scale Internet treatment. Two laboratory treatments complement … incentives. Our results suggest that cost-effective BRIS consist of high nominal payoffs and a small selection probability …

This paper analyzes the effects of symmetric and asymmetric taxation on performance-based versus fixed remuneration … less frequently. Fixed remuneration contracts are penalized more heavily by asymmetric taxation than performance …

incentives under limited commitment. It circumvents ratchet effects and facilitates the revelation of persistent private …

bargaining, leading to stronger effort incentives and higher output. However, it also reduces incentives for labor market …

reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We … distinguish two cases. First, the firm owner chooses the intensity of motivation and bears the motivational costs. Second, another … conditions under which monetary incentives and motivational effort are substitutes or complements, and show that motivational …