Proponents of the so-called New Economy claim that it entails a structural change of the economy. Such a change, in turn, would require the central bank to rethink its monetary policy to the extent that traditional relationships between inf1ation and economic growth are no longer valid. But such...

Several surveys on intra-industry dynamics have recently reached the conclusion from a large body of evidence that Gibrat's Law does not hold, i.e., the main finding is that firm growth decreases with firm size. However, almost all of these studies have been based on manufacturing. In this paper...

This paper determines the structural shocks that shape a firm's first year by estimating a structural model of firm growth, learning, and survival using monthly sales histories from 305 Texas bars. We find that heterogeneity in firms' pre-entry scale decisions accounts for about 40% of their...

Involuntary absence is often seen as an exogenous factor, but firms can take actions to reduceit. In this paper the notion that firms, especially SMEs, are faced with a single decisionwhether or not to undertake these actions is questioned. A firm model on involuntary absencemeasures is...

In this paper we test the celebrated quot;Strength of weak tiesquot; theory of Granovetter (1973). We test two hypotheses on the network structure in a data set of collaborating economists. While we find support for the hypothesis of transitivity of strong ties, we reject the hypothesis that...

We study optimal incentive contracts for workers who are reciprocal to management attention. When neither worker's effort nor manager's attention can be contracted, a double moral-hazard problem arises, implying that reciprocal workers should be given weak financial incentives. In a...

While it seems evident that occupations affect health, effect estimates are scarce. We use a job characteristics matrix in order to characterize occupations by their physical and psychosocial burden in German panel data spanning 26 years. Employing a dynamic model to control for factors that...

It is argued that the concept of well-being inequality cannot be properly defined without taking the reference process into account. The reference effect depends on how frequently individuals compare with others and on the degree of social transparency in society. In this paper we employ the...

This paper reports the results from a controlled field experiment designed to investigate the causal effect of public recognition on employee performance. We hired more than 300 employees to work on a three-hour data-entry task. In a random sample of work groups, workers unexpectedly received...