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This paper investigates whether observed executive compensation contracts are designed to provide risk-taking incentives in addition to effort incentives. We develop a stylized principal-agent model that captures the interdependence between firm risk and managerial incentives. We calibrate the...
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Inspired by a recent observation about an online retail company, this paper explains why a firm may find it optimal to offer an exit bonus to recent hires so as to induce self-selection. We study a double adverse selection problem, in which the principal can neither observe agents’ commitment...
Persistent link: https://www.econbiz.de/10010224783
, therefore,says that a firm sets higher wages, the higher unemployment. As themodel is applicable tothe upper segment of the …In this paper, I study the wage a firm sets to attract high abilityworkers (hipo's) in situationsof unemployment. I … show that the higher unemployment, the larger afirm's incentives to sorthigh and low ability workers. Moreover, workers …
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This research documents changes in employment and wages in the Netherlands for different types of workers. We compare … 2017 to 2023 using regression-adjusted wages to make sure changes in composition of the workforce do not influence our … slightly fallen. Wages have been rising for workers at the bottom of the wage distribution. From the median of the wage …
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In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus … flows on wage formation as alternative to the traditional specification of wage equations where unemployment represents the …
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