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Testing for Distortions in Performance Measures : An Application to Residual Income Based Measures Like EVA
Sloof, Randolph; van Praag, Mirjam - 2014
Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to be dysfunctional (gaming). This paper applies the empirical test developed by Courty and Marschke (2008) to detect whether the widely used class of Residual Income based...
Persistent link: https://www.econbiz.de/10014140893
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The Degradation of Distorted Performance Measures
Sloof, Randolph; van Praag, Mirjam - 2008
Baker (2002) has demonstrated theoretically that the quality of performance measures used in compensation contracts hinges on two characteristics: noise and distortion. These criteria, though, will only be useful in practice as long as the noise and distortion of a performance measure can be...
Persistent link: https://www.econbiz.de/10010325988
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Catching Hipo's: Screening, Wages and Unemployment
Janssen, Maarten C.W. - 2000
, therefore,says that a firm sets higher wages, the higher unemployment. As themodel is applicable tothe upper segment of the …
Persistent link: https://www.econbiz.de/10010324718
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Nash Bargaining and the Wage Consequences of Educational Mismatches
Hartog, Joop; Sattinger, Michael - 2012
The paper provides a theoretical foundation for the empirical regularities observed in estimations of wage consequences of overeducation and undereducation. Workers with more education than required for their jobs are observed to suffer wage penalties relative to workers with the same education...
Persistent link: https://www.econbiz.de/10010326479
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The Effect of Immigration on Native Earnings
Zorlu, Aslan; Hartog, Joop - 2000
wages of less skilled natives and a small positive effecton the wages of high skilledworkers as new immigrants are less …
Persistent link: https://www.econbiz.de/10010324586
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Starting Wages Respond To Employer's Risk
Berkhout, Peter; Hartog, Joop; van Ophem, Hans - 2009
wages reflect this, with lower pay for greater uncertainty. We use the dispersion of exam grades within a field of education … as an indicator of the unobserved heterogeneity that employers face. We find solid evidence that starting wages are lower …
Persistent link: https://www.econbiz.de/10010325894
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Tenure Profiles and Efficient Separation in a Stochastic Productivity Model
Buhai, Sebastian; Teulings, Coen N. - 2006
This paper provides a new way of analyzing tenure profiles in wages, by modelling simultaneously the evolution of wages … observe outside wages only at job start and job separation, our empirical analysis of within job wage growth is based on … expected wage growth conditional on the outside wages at both dates. Our modelling allows testing of the effcient bargaining …
Persistent link: https://www.econbiz.de/10014061535
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A Comment on Revealed Preference with a Subset of Goods
van Bruggen, Paul - 2016
Varian (1988) introduced an important proposition regarding restrictions on consumption data if observations of the quantities of a good are missing. In this paper, a simple counterexample is presented to show that the original proof is incorrect, and a new proof is provided. The new proof is...
Persistent link: https://www.econbiz.de/10011586683
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Afriat in the Lab
Heufer, Jan; van Bruggen, Paul - 2016
Varian (1988) showed that the utility maximization hypothesis cannot be falsified when only a subset of goods is observed. We show that this result does not hold under the assumptions that unobserved prices and expenditures remain constant. These assumptions are naturally satisfied in laboratory...
Persistent link: https://www.econbiz.de/10011586710
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Homothetic Efficiency and Test Power: A Non-Parametric Approach
Heufer, Jan; Hjertstrand, Per - 2015
We provide a nonparametric revealed preference approach to demand analysis based on homothetic efficiency. Homotheticity is a useful restriction but data rarely satisfies testable conditions. To overcome this we provide a way to estimate homothetic efficiency of consumption choices. It...
Persistent link: https://www.econbiz.de/10011288415