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Task difficulty, performance measure characteristics, and the trade-off between insurance and well-allocated effort
Schnedler, Wendelin (contributor) - 2006
When designing incentives for a manager, the trade-off between insurance and a "good" allocation of effort across various tasks is often identified with a trade-off between the responsiveness (sensitivity, precision, signal-noise ratio) of the performance measure and its similarity (congruity,...
Persistent link: https://www.econbiz.de/10003323166
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Who pays for performance?
Barth, Erling; Bratsberg, Bernt; Haegeland, Torbjørn; … - 2006
Using Norwegian establishment surveys from 1997 and 2003, we show that performance-related pay is more prevalent in firms where workers of the main occupation have a high degree of autonomy in how to organize their work. This observation supports an interpretation of incentive pay as motivated...
Persistent link: https://www.econbiz.de/10003328059
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Performance pay and earnings : evidence from personnel records
Pekkarinen, Tuomas (contributor); Riddell, Chris (contributor) - 2006
This paper examines the effects of performance pay on earnings using linked employee-employer panel data from Finland. These payroll data contain information on the exact share of earnings obtained and hours worked on a performance pay contract. Using these data, we estimate the effects of...
Persistent link: https://www.econbiz.de/10003355649
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Self-selection and the efficiency of tournaments
Eriksson, Tor (contributor); Teyssier, Sabrina (contributor) - 2006
When exogenously imposed, rank-order tournaments have incentive properties but their overall efficiency is reduced by a … to investigate the ex ante sorting effect of tournaments. This paper reports results from an experiment analyzing whether … allowing subjects to self-select into different payment schemes helps in reducing the variability of performance in tournaments …
Persistent link: https://www.econbiz.de/10003283430
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Women and competition in elimination tournaments : evidence from professional tennis data
Lallemand, Thierry (contributor);  … - 2005
players' incentives to adjust effort according to success chances. -- sports economics ; tournaments ; incentives …
Persistent link: https://www.econbiz.de/10003285374
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Income taxes and the composition of pay
Brunello, Giorgio (contributor); Comi, Simona (contributor);  … - 2006
According to the standard principal-agent model, the optimal composition of pay should balance the provision of incentives with the individual demand for insurance. Do income taxes alter this balance? We show that the relative share of PRP on total pay is reduced by higher average taxes, and is...
Persistent link: https://www.econbiz.de/10003344612
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Performance pay and within-firm wage inequality
Barth, Erling; Bratsberg, Bernt; Haegeland, Torbjørn; … - 2009
This paper examines the impact of performance-related pay on wage differentials within firms. Our theoretical framework predicts that, compared to a fixed pay system, pay schemes based on individual output increase within-firm wage inequality, while group-based bonuses have minor effects on wage...
Persistent link: https://www.econbiz.de/10003831899
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Sabotage in tournaments : evidence from a laboratory experiment
Harbring, Christine; Irlenbusch, Bernd - 2009
behavior is almost non-existent. We study sabotage in tournaments in a controlled laboratory experiment and are able to confirm …
Persistent link: https://www.econbiz.de/10003859419
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The effect of adversity on process innovations and managerial incentives
Dostie, Benoît; Jayaraman, Rajshri - 2009
This paper asks whether adversity spurs the introduction of process innovations and increases the use of managerial incentives by firms. Using a large panel data set of workplaces in Canada, our identification strategy relies on exogenous variation in adversity arising from increased border...
Persistent link: https://www.econbiz.de/10003863657
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On the relevance and composition of gifts within the firm : evidence from field experiments
Bellemare, Charles; Shearer, Bruce S. - 2009
We investigate the economic relevance and the composition of gifts within a firm where output is contractible. We develop a structural econometric model that identifies workers' optimal reaction to monetary gifts received from their employer. We estimate the model using data from two separate...
Persistent link: https://www.econbiz.de/10003879373