The 1/n problem potentially limits the effectiveness of profit sharing in motivating workers. While the economic literature suggests that reciprocity can mitigate this problem, it remains silent on the optimal degree of reciprocity. We present a representative model demonstrating that...

Using unique survey data from the German Socio-Economic Panel, this study examines the influence of reciprocal inclinations on workers' sorting into codetermined firms. Employees with strong negative reciprocal inclinations are more likely to work in firms with a works council while employees...

In this paper, we study whether performance feedback can serve as an instrument for firms to increase employee retention. Feedback on the relative performance may affect individual job search behavior differently depending on workers' relative rank among their peers. In line with these...

The paper investigates determinants of formal and non-formal continuous vocational training and its income effects among German selfemployed and employed workers in 1991/92. Participation in continuous formal training is more frequently observed with employed workers, whereas self-employed are...

A comprehensive descriptive analysis of gender wage differences over a long time period is missing for West Germany. Using an empirical approach which takes into account explicitely changes of wage distributions for both males and females as well as life-cycle and birth cohort effects, we go...

The literature on skill-biased technological change concentrates on highly skilled and unskilled employees. It is unclear, however, if the employment opportunities of the majority of the labour force in Germany-employees with a degree from the dual apprenticeship system-increase or not. In...

Hidden Champions (HCs) are firms unknown to the wider public, but global leaders in the niche markets they serve. This paper looks at distinctive features of these firms, focusing on their dynamic capabilities. Employing a unique data base on German firms, we identify a representative sample of...

This paper deals with the conditions of effective transfer of technology from Universities and public research institutions to small and medium-sized enterprises. The theoretical and empirical analyses lead to the conclusion that the chances of improving the technology transfer does not lie in a...

We develop a macroeconomic portfolio stress test that is specifically geared towards small and medium-sized banks. We combine a credit risk stress test which simulates credit impairments via a CreditMetrics type multi-factor portfolio model with an income stress test in the form of dynamic panel...