We present a model showing that firms with interdependent worker productivity (team production) have a higher cost of absence and as a consequence will spend additional resources on monitoring absence. As a result, firms with team production should have lower absence rates, all else equal. Using...

This paper presents a model showing that profit sharing is subject to the 1/N problem in the case of independent worker productivity but not in the case of interdependent worker productivity. This implies the role of firm size on the likelihood of profit sharing will differ by the nature of the...

While available evidence suggests that the events of September 11th negatively influenced the relative earnings of employees with Arab background in the US, it is not clear that they had similar effects in other countries. Our study for Germany provides evidence that the events also affected the...

We provide the first experimental test of the consequences of delegation in a mixed duopoly. Such delegation allows a profit maximizing private owner and a welfare maximizing public owner to weight sales in managerial contracts. Theory predicts that such contracts improve welfare. Our evidence...