We study the role of employees' identification to the employer for wage growth. We first show in a formal model that identification implies countervailing effects: Employees with higher identification are more valuable as they exert higher efforts, but have weaker bargaining positions, and less...

We investigate wage differences between newly hired and incumbent employees. We show in a formal model that when employees care for wages as well as match-specific utility, incumbents earn less than new recruits if and only if firm-specific human capital is not too important. The existence and...

It is often claimed that supervisors do not differentiate enough between high and low performing employees when evaluating performance. The purpose of this paper is to study the incentive effects of this behavior empirically. We first show in a simple model that the perceived degree of past...

We study the performance effects of payment schemes for freelancers offering services on an online platform in an RCT. Under the initial scheme, the firm pays workers a pure sales commission. The intervention reduces the commission rate and adds a fixed payment per processed order to insure...

Most firms rely on subjective evaluations by supervisors to assess their employees' performance. This article discusses the implementation of such appraisal processes, exploring the use of multiple research methods such as the analysis of personnel records, survey data, and lab and field...

The unavailability of potential stem cell donors poses a critical challenge for donor registries worldwide. This study investigates the impact of initiatives of a stem cell donor registry to enhance donors' availability for confirmatory typing. Initiatives ask donors to provide a sample for...

We offer a comprehensive analysis of the organizational and behavioral foundations of employees' helping and antisocial behavior as an integral part of a firm's workplace culture and working climate. Using representative employer-employee panel data of larger German private-sector firms, we...

We investigate the use of performance appraisal (PA) in German Firms. First, we derivehypotheses on individual and job based determinants of PA usage. Based on arepresentative German data set on individual employees, we test these hypotheses and alsoexplore the impact of PA on performance pay...

This paper investigates the effects of managerial incentives on favoritism in promotion decisions. First, we theoretically show that favoritism leads to a lower quality of promotion decisions and in turn lower efforts. But the effect can be mitigated by pay-for-performance incentives for...

We investigate the effects of inequality in wealth on the incentives to contribute to a public good when agents are inequity averse and may differ in ability. We show that equality may lead to a reduction of public good provision below levels generated by purely selfish agents. But introducing...