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convinced that their manager cares for them. Managers can signal their altruistic feelings towards their employees in two ways … altruistic managers may offer lower wages and nevertheless build up better social-exchange relationships with their employees … than egoistic managers do. In such equilibria, a low wage signals to employees that the manager has something else to offer …
Persistent link: https://www.econbiz.de/10003803551
Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when … return. Further results on the form of contracts are also derived. -- managers ; risky decisions ; limited liability …
Persistent link: https://www.econbiz.de/10003937594
Ownership of small businesses can facilitate upward mobility through the income hierarchy and help individuals maintain a place at the higher end of the income distribution hierarchy. This paper compares the positional stability of owners of small businesses with that of wage earners, arguing...
Persistent link: https://www.econbiz.de/10003850142
Persistent link: https://www.econbiz.de/10003499534
One can be independent, or subject to decisions made by others. This paper empirically tests whether individuals attach an intrinsic value to the institutional difference between independence and hierarchy. Taking self-employment as an important case of independence, it is shown that the...
Persistent link: https://www.econbiz.de/10011507967
We model network formation in a firm. Agents learn about the quality of their working relationships with each other. Their good relationships become their networks. Accumulating relationships becomes increasingly costly, however. Over time agents become less open to forming relationships with...
Persistent link: https://www.econbiz.de/10012124857
firms well positioned to learn those markets at arm’s length. We find that, controlling for the greater overlap of spinoffs …
Persistent link: https://www.econbiz.de/10011794641
We conducted a randomized controlled trial involving nearly 700 customer-service representatives (CSRs) in a Canadian government service agency to study whether providing CSRs with performance feedback with or without peer comparison affected their subsequent organ donor registration rates....
Persistent link: https://www.econbiz.de/10013413486
The well-known Johansson-Samuelson Theorem proves that, in partial equilibrium, comprehensive income taxation with a uniform tax rate is neutral in terms of investment decisions, if fiscal depreciation allowances coincide with economic depreciation. In this article we show that this result does...
Persistent link: https://www.econbiz.de/10003730388
We use the German Job Vacancy Survey to investigate whether firms are able to attract more suitable applicants by offering bargain wages rather than posting fixed wages. Contrary to the theoretical predictions provided by the literature, we find that the offer to bargain over pay decreases the...
Persistent link: https://www.econbiz.de/10011310001