Showing 1 - 10 of 29
This paper experimentally investigates the impact of different pay and relative performance information policies on … employee effort. We explore three information policies: No feedback about relative performance, feedback given halfway through … off. Moreover, in both pay schemes information feedback reduces the quality of the low performers' work. -- Performance …
Persistent link: https://www.econbiz.de/10003688788
When exogenously imposed, rank-order tournaments have incentive properties but their overall efficiency is reduced by a high variance in performance (Bull, Schotter, and Weigelt 1987). However, since the efficiency of performance-related pay is attributable both to its incentive effect and to...
Persistent link: https://www.econbiz.de/10003283430
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
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
This paper considers the effect of status or relative income on work effort combining experimental evidence from a gift-exchange game with ISSP survey data. We find a consistent negative effect of others' incomes on individual effort in both datasets. The individual's rank in the income...
Persistent link: https://www.econbiz.de/10003333113
Sharing the available stock of work more fairly is a popular concern in the public policy debate. One policy proposal is to reduce overtime work in order to allow the employment of more people. This paper suggests that such a concept faces major problems. Using Germany as a case study, it is...
Persistent link: https://www.econbiz.de/10011295411
This paper presents the results of a laboratory experiment in which workers perform a real-effort task and supervisors report the workers' performance to the experimenter. The report is non verifiable and determines the earnings of both the supervisor and the worker. We find that not all the...
Persistent link: https://www.econbiz.de/10009311502
Male and female choices differ in many economic situations, e.g., on the labor market. This paper considers whether such differences are driven by different attitudes towards competition. In our experiment subjects choose between a tournament and a piece-rate pay scheme before performing a real...
Persistent link: https://www.econbiz.de/10003280790
Motivated by models of worker flows, we argue in this paper that monopsonistic discrimination may be a substantial factor behind the overall gender wage gap. On matched employer-employee data from Norway, we estimate establishment-specific wage premiums separately for men and women, conditioning...
Persistent link: https://www.econbiz.de/10003794035
We identify the causal effect of compulsory military service on conscripts' subsequent labor-market outcomes by exploiting the regression-discontinuity design of the military draft in Germany during the 1950s. Unbiased estimates of the effect of military service on lifetime earnings, wages, and...
Persistent link: https://www.econbiz.de/10003909227