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of overeducation and undereducation. Workers with more education than required for their jobs are observed to suffer wage … predicts a wage penalty for overeducation and a wage reward for undereducation, and further predicts that the wage penalty will …
Persistent link: https://www.econbiz.de/10010326479
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
A worker's utility may increase with his income, but envy can make his utility decline with his employer's income. This article uses a principal-agent model to study profit-maximizing contracts when a worker envies his employer. Envy tightens the worker's participation constraint and so calls...
Persistent link: https://www.econbiz.de/10010325487
Inspired by a recent observation about an online retail company, this paper explains why a firm may find it optimal to offer an exit bonus to recent hires so as to induce self-selection. We study a double adverse selection problem, in which the principal can neither observe agents’ commitment...
Persistent link: https://www.econbiz.de/10010326509
Inspired by a recent observation about an online retail company, this paper explains why a firm may find it optimal to offer an exit bonus to recent hires so as to induce self-selection. We study a double adverse selection problem, in which the principal can neither observe agents’ commitment...
Persistent link: https://www.econbiz.de/10014152576
This paper employs survey data on the reasons to quit of Dutch job changers who entered or left a public sector job in 2001. We show that workers' reasons to quit their public sector job influence their decision to stay in or leave their industry of employment. A bad experience with, for...
Persistent link: https://www.econbiz.de/10010325442
make it easier for them to switch employers than for the part-time educated auditors. The predictions on tenure and wages …
Persistent link: https://www.econbiz.de/10010324997
How valuable is education for entrepreneurs’ performance as compared to employees’? What might explain any differences? And does education affect peoples’ occupational choices accordingly? We answer these questions based on a large panel of US labor force participants. We show that...
Persistent link: https://www.econbiz.de/10010325994
This paper identifies the role of cultural diversity in explaining spatial disparities in wages and housing prices …-based productivity, consumption amenities and sorting of heterogeneous home owners while controlling for interactions between the labor … wages and housing prices, particularly in the largest and most densely populated cities. This result is largely driven by …
Persistent link: https://www.econbiz.de/10010326320
records and an employee survey, we provide evidence that wages are attached to jobs and that promotions play a dominant role …
Persistent link: https://www.econbiz.de/10010325291