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Tournaments and managerial incentives in China's listed firms: new evidence

Kato, Takao; Long, Cheryl - 2008

an optimal response of the winner's prize to the size of the contestant pool is more evident for China's listed firms … to decide on the tournament winner). Using comprehensive financial and accounting data on China's listed firms from 1998 … effort and hence improved firm performance, and that the performance effect of the winner's prize is greater for China …

Persistent link: https://www.econbiz.de/10010268884

Career Concerns in a Simple Experimental Labour Market

Irlenbusch, Bernd; Sliwka, Dirk - 2003

We experimentally investigate a simple version of Holmström?s career concerns model in which firms compete for agents in two consecutive periods. Profits of firms are determined by agents? unknown ability and the effort they choose. Before making second-period wage offers firms are informed...

Persistent link: https://www.econbiz.de/10010261580

Effort-Based Career Opportunities and Working Time

Bratti, Massimiliano; Staffolani, Stefano - 2005

In this paper we describe the hypothesis of effort-based career opportunities as a situation in which profit maximizing firms create incentives for employees to work longer hours than the bargained ones, by making career prospects dependent on working hours. When effortbased career opportunities...

Persistent link: https://www.econbiz.de/10010262198

The Peter Principle: A Theory of Decline

Lazear, Edward P. - 2003

Some have observed that individuals perform worse after being promoted. The Peter Principle, which states that people are promoted to their level of incompetence, suggests that something is fundamentally misaligned in the promotion process. This view is unnecessary and inconsistent with the...

Persistent link: https://www.econbiz.de/10010262717

Job assignments under moral hazard: the Peter Principle revisited

Koch, Alexander K.; Nafziger, Julia - 2007

The Peter Principle captures two stylized facts about hierarchies: first, promotions often place employees into jobs for which they are less well suited than for that previously held. Second, demotions are extremely rare. Why do organizations not correct 'wrong' promotion decision? This paper...

Persistent link: https://www.econbiz.de/10010268113

Promotions and incentives: the case of multi-stage elimination tournaments

Altmann, Steffen; Falk, Armin; Wibral, Matthias - 2008

Promotion tournaments play an important role for the provision of incentives in firms. In this paper, we extend research on single-stage rank-order tournaments and analyze behavior in multi-stage elimination tournaments. The main treatment of our laboratory experiment is a two-stage tournament...

Persistent link: https://www.econbiz.de/10010269362

Earnings progression, human capital and incentives: Theory and evidence

Frederiksen, Anders - 2010

The career prospects of newly recruited employees differ substantially within an organization. The stars experience a considerable growth in earnings; others can hardly maintain their entry salaries. This article sheds light on the mechanisms generating the observed heterogeneity in earnings...

Persistent link: https://www.econbiz.de/10010269862

Up or out: Research incentives and career prospects of postdocs in Germany

Fitzenberger, Bernd; Leuschner, Ute - 2012

Academic careers in Germany have been under debate for a while. We conduct a survey among postdocs in Germany, to analyze the perceptions and attitudes of postdocs regarding their research incentives, their working conditions, and their career prospects. We conceptualize the career prospects of...

Persistent link: https://www.econbiz.de/10010282386

The firm as the locus of social comparisons: Internal labor markets versus up-or-out

Auriol, Emmanuelle; Friebel, Guido; Lammers, Frauke - 2012

We suggest a parsimonious dynamic agency model in which workers have status concerns. A firm is a promotion hierarchy in which a worker's status depends on past performance. We investigate the optimality of two types of promotion hierarchies: (i) internal labor markets, in which agents have a...

Persistent link: https://www.econbiz.de/10010282601

A "glass-ceiling" effect for immigrants in the Italian labour market?

Dell'Aringa, Carlo; Lucifora, Claudio; Pagani, Laura - 2012

This paper investigates earnings differentials between immigrants and natives. We focus on returns and on the (imperfect) international transferability of human capital. Data are drawn from the 2009 Italian Labour Force Survey (LFS). We show that returns to human capital are considerably lower...

Persistent link: https://www.econbiz.de/10010282538