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Feedback and incentives : experimental evidence

Eriksson, Tor (contributor); Poulsen, Anders (contributor); … - 2008

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

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 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

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

Sources of the union wage gap : results from high-dimensional fixed effects regression models

Addison, John T.; Portugal, Pedro; Vilares, Hugo - 2015

This paper provides estimates of the union wage gap in Portugal, a nation until recently lacking independent data on union density at firm level. Having estimated nonlinear and linear estimates of the effect of union density on the wage gap, the next stage of the analysis seeks to account for...

Persistent link: https://www.econbiz.de/10011307886

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

Effort and comparison income : experimental and survey evidence

Clark, Andrew E. (contributor); Masclet, David (contributor) - 2006

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

Lies and biased evaluation : a real-effort experiment

Rosaz, Julie; Villeval, Marie-Claire - 2011

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

Wages and the risk of displacement

Carneiro, Anabela (contributor); Portugal, Pedro (contributor) - 2006

In this paper a simultaneous-equations model of firm closing and wage determination is developed in order to analyse how wages adjust to unfavorable shocks that raise the risk of displacement through firm closing, and to what extent a wage change affects the exit likelihood. Using a longitudinal...

Persistent link: https://www.econbiz.de/10003278902

Male and female competitive behavior : experimental evidence

Gupta, Nabanita Datta (contributor); … - 2005

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

Market power, dismissal threat and rent sharing : the role of insider and outsider forces in wage bargaining

Carneiro, Anabela (contributor); Portugal, Pedro (contributor) - 2006

One of the predictions of the insider-outsider theory is that wages will be higher in sectors (firms) with high labor adjustment costs/high turnover costs. This prediction is tested empirically in this study, using an insider-outsider model and a longitudinal panel of large firms in Portugal....

Persistent link: https://www.econbiz.de/10003314671