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This paper develops a simple economic model to examine how leadership styles in organizations depend on the prevailing wage-setting conditions for workers. In particular, we examine a leader who can - in addition to the use of monetary incentives - motivate a worker by adopting leadership styles...
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brightest managers to the public sector abound. This paper studies self-selection into managerial and non-managerial positions … ability and in public service motivation. We find that, if demand for public sector output is not too high, the equilibrium … return to managerial ability is always highest in the private sector. As a result, relatively many of the more able managers …
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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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