Wage flexibility is often considered to be caused by the highly regulated labor market and the rigid system of labor law existing in Germany, especially in the field of wage determination. In this paper the impact of existing labor agreements on incentive systems in Germany is analyzed. It...

Using a survey with 57 German firms, we evaluate the level of digitalization of the human resource management (HRM) function and document perceived benefits and barriers of technology adoption from organizational and individual users’ perspectives. The results give reason for optimism. Most of...

Recent empirical studies suggest that poor public sector performance in developing nations is due in part to the difficultly of selecting workers whose motivation is aligned with the mission of the institution -- in direct contrast to evidence from developed nations, public sector workers tend...

In a tedious real effort task, subjects know that their piece rate is either low or ten times higher. When subjects are informed about their piece rate realization, they adapt their performance. One third of subjects nevertheless forego this instrumental information when given the choice - and...

State capacity is optimized when public institutions are staffed by individuals with public-service motivation. However, when motivated agents value the collective reputation of their place of employment, steady-state equilibria with both high and low aggregate motivation (reputation) in the...