Within an efficiency wage framework, we study the effects of two revenue-neutral tax reformsthat change the progressivity of the labour tax system. A revenue-neutral increase in both thewage tax and tax exemption and a revenue-neutral change in the composition of labourtaxation towards the tax...

The paper provides evidence concerning incidence and sources of nominal wage rigidity in servicesand manufacturing, using a new and large employer survey on wage and price setting behaviour forGermany. We observe that wage freezes are more frequent in services than in manufacturing, whereaswage...

We present an experimental test of a shirking model where monitoring intensityis endogenous and effort a continuous variable. Wage level, monitoring intensityand consequently the desired enforceable effort level are jointly determined bythe maximization problem of the firm. As a result,...

To explain potential sources of wage rigidity this article analyzes a model of reciprocalkindness applied to a repeated ultimatum game with changing and nonzeroconflict payoffs. The model is also tested in a laboratory experiment. The resultsare compatible with the rentsharingapproach to wage...

We present a field experiment to assess the effect of own and peer wage variations onactual work effort of employees with hourly wages. Work effort neither reacts to anincrease of the own wage, nor to a positive or negative peer comparison. This resultseems at odds with numerous laboratory...

This paper studies the impact of labour taxation in a shirking model with wage bargaining.It is shown that if the ratio of unemployment compensation to the net-of-tax wage iskept fixed a tax cut leads to higher unemployment. When the unemployment benefitsreplacement ratio is allowed to change,...

The presented paper proves that working time arrangements, which include hours flexibilityand enable hours deposits, are appealing under product market uncertainty. The modelintegrates efficiency wage arguments into an implicit insurance-contract environment, thusextending the existing...

We consider the effects on reward systems of workers concern withrelative pay by comparing the wage costs of providing incentives through groupversus individual bonus schemes. When workers have a propensity for envy, eitherscheme may be the least cost one depending on the workers outside...

This paper observes in which way working hours as well as effort respond to a wage increase and we have full control regarding theworkers´ anticipation of the wage increase.

Die Beschäftigungswirkungen von Steuersenkungen und Änderungen der Steuerprogressionwerden in Modellen mit Lohnverhandlungen und Effizienzlöhnen untersucht.Es zeigt sich, daß die betrachteten Standardmodelle die positiven Effekteeiner steileren Steuerprogression überzeichnen;...