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workers' wages or let them choose their own. Firms can delegate the wage decision to neither, one or both workers in the firm …. We vary the information workers receive, finding that social comparisons concerning both wages and decision rights affect …
Persistent link: https://www.econbiz.de/10010226059
In recent decades, most developed countries have experienced a simultaneous increase in income inequality and management compensation. In this paper, we study the relation between management compensation and firm-level income dynamics in a general equilibrium model. Empirical estimation, of the...
Persistent link: https://www.econbiz.de/10003754931
The home market effect (HME) is a distinguishing feature of the newʺ theory of international trade, but it is uncertain …
Persistent link: https://www.econbiz.de/10002551226
unionization in an industry and region and a higher union wage differential are associated with fewer managers. (2) Managers wages …We examine the relationship between the employment and compensation of managers and CEOs and the presence of a … unionized workforce. We develop a simple efficiency wage model, with a tradeoff between higher wages for workers and more …
Persistent link: https://www.econbiz.de/10011333286
It has been claimed that the market fosters selfishness and thereby undermines the moral basis of society. This thesis has been developed with an emphasis on market exchange. Everyday life is, however, predominantly shaped by interactions in the workplace rather than by shopping behaviour. This...
Persistent link: https://www.econbiz.de/10011415214
The present paper aims to contribute to the literature on the foundations of incomplete contracts by providing conditions under which simple delegation of authority is the solution to the complete-contracting problem of the parties. We consider a hold-up framework where both parties profit from...
Persistent link: https://www.econbiz.de/10002352332
; delegation problem ; moral hazard ; search theory …
Persistent link: https://www.econbiz.de/10009006957
This paper studies a partial-contracting model where an agent may provide effort to increase a project’s scope before some later decisions have to be taken. Consistent with existing empirical evidence, we find a positive relationship between exogenous risk and delegation. That is, we show that...
Persistent link: https://www.econbiz.de/10003566282
This study examines how career interruptions and subsequent wages of employees are related. Using individual panel data … of middle managers from the German chemical sector, we are able to differentiate between different reasons for …
Persistent link: https://www.econbiz.de/10011641615
extent to which managers' compensation was affected by the economic crisis and the extent to which it increased afterwards … perspective. We also examine that certain parts of managers seem to have more power to influence their compensation than others …. Inequality in managers' compensation decreased during the crisis. …
Persistent link: https://www.econbiz.de/10009754706