complexity and uncertainty. We exploit quasi-random assignment of employees to managers and study the role of frontline managers … administrative data and panel survey data from before and during the Covid-19 pandemic, we find that frontline managers who were …

misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private …: employees that create lower expected profits as managers have yet better promotion prospects. That finding still holds when the … firm owner optimally chooses the promotion rule, the degree of delegation, and wage payments to both employees and managers …