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damage the work climate. We show that both team incentives and relative incentives can help to create a good work climate …
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team work if their co-workers do the same. We show that there is no pooling in equilibrium, and that workers self …-select into firms that differ in their incentives as well as their resulting level of team work. Our model can explain why firms …
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This paper uses matched employer-employee panel data to show that individual job satisfaction is higher when other workers in the same establishment are better-paid. This runs contrary to a large literature which has found evidence of income comparisons in subjective well-being. We argue that...
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