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We examine the impact of individual-level motives upon innovative effort and performance in firms. Drawing from economics and social psychology, we develop a model of the impact of individuals' motives and incentives upon their innovative effort and performance. Using data on over 11,000...
Persistent link: https://www.econbiz.de/10012464204
the tradeoff between insurance and incentives. I then offer econometric and case-study evidence suggesting that this …
Persistent link: https://www.econbiz.de/10012473133
This paper estimates the effect of the individual incentives teachers face in a teacher-based value-added merit pay tournament on student achievement. We first build an illustrative model in which teachers use proximity to an award threshold to update their information about their own ability,...
Persistent link: https://www.econbiz.de/10012457071
We argue that the root cause behind the recent corporate scandals associated with CEO pay is the technology bubble of the latter half of the 1990s. Far from rejecting the optimal incentive contracting theory of executive compensation, the recent evidence on executive pay can be reconciled with...
Persistent link: https://www.econbiz.de/10012466561
corporate finance literature is that executive perks are a form of agency or private benefit and a way for managers to …
Persistent link: https://www.econbiz.de/10012468199
An effective performance-based compensation system must increase the probability of high performance corporate outcomes in order to justify the incremental expense relative to a straight salary system. A positive relation between current performance and current compensation indicates that the...
Persistent link: https://www.econbiz.de/10012475894
We design a model-based field experiment to estimate the nature and magnitude of workers' social preferences towards their employers. We hire 446 workers for a one-time task. Within worker, we vary (i) piece rates; (ii) whether the work has payoffs only for the worker, or also for the employer;...
Persistent link: https://www.econbiz.de/10012456631
While U.S. legislation prohibits employers from sharing information about their employees' compensation with each other …
Persistent link: https://www.econbiz.de/10013435132
employees' greater willingness to bear risk. We discuss implications for research as well as for managers and policy makers …We examine whether startups attract employees with different pecuniary and non-pecuniary motives than small or large … across firm types. Using data on over 10,000 U.S. R&D employees, we find that startup employees place lower importance on job …
Persistent link: https://www.econbiz.de/10012455582
Arguably the fundamental problem faced by employers is how to elicit effort from employees. Most models suggest that … employers meet this challenge by monitoring employees carefully to prevent shirking. But there is another option that relies on … heterogeneity across employees, and that is to screen job candidates to find workers with a stronger work ethic who require less …
Persistent link: https://www.econbiz.de/10012466598