In this paper we describe the important features of executive compensation in the US from 1993 to 2006. Some confirm what has been found for earlier periods and some are novel. Notable facts are that: the compensation distribution is highly skewed; each year, a sizeable fraction of chief...

We study the role social interactions at the workplace play in the decision to apply for a professional recognition program. In Chile, teachers can apply to a pedagogical excellence award. Successful applicants receive a wage increase and are publicly recognized. We exploit the quasi-random...

A well-known theoretical result in the contest literature is that greater heterogeneity decreases performance of contestants because of the "discouragement effect." Leveling the playing field by favoring weaker contestants through bid-caps and favorable tie-breaking rules can reduce the...

We study the optimal management of evolving hierarchies, which abound in real-life phenomena. An initiator invests into finding a subordinate, who will bring revenues to the joint venture and who will invest herself into finding another subordinate, and so on. The higher the individual...

This paper documents and studies the gender gap in performance among associate lawyers in the United States. Unlike other high-skilled professions, the legal profession assesses performance using transparent measures that are widely used and comparable across firms: the number of hours billed to...

Contributing to a social cause can be an important driver for workers in the public and non-profit sector as well as in firms that engage in Corporate Social Responsibility activities. This paper compares the effectiveness of social incentives - that take the form of a donation received by a...

Do the contests with the largest prizes attract the most-able contestants? To what extent do contestants avoid competition? In this paper, we show, theoretically and empirically, that the distribution of abilities plays a crucial role in determining contest choice. Complete sorting exists only...

Despite the potential importance of awards as a possible career catalyst, the theoretical and empirical research on awards is still in its infancy. Here, we address this notable shortcoming in the economic literature by exploring data from German youth football. Analyzing whether an early career...

We analyze the effects on teacher retention and between school mobility of a program that rewards excellence in pedagogical practice in Chile. Teachers apply voluntarily for the award and those who succeed on a set of assessments receive a 6 percent annual wage increase for up to 10 years. We...

The extensive sorting of more talented teachers into the most advantaged schools contributes to the wide socioeconomic achievement gaps in Latin America. The Chilean Pedagogical Excellence Assignment (AEP, for its Spanish acronym) is a unique program in the region that provides monetary...