How does the environment of an organization inuence whether workersvoluntarily provide eort? We study the power relationship betweena non-prot unit (e.g. university department, NGO, healthtrust), where workers care about the result of their work, and a bu-reaucrat, who supplies some input to the...

Incentives often fail in inducing economic agents to engage in a desirableactivity; implementability is restricted. What restricts implementability?When does re-organization help to overcome this restriction?This paper shows that any restriction of implementabilityis caused by an identification...

About one in four workers challenges her dismissal in front of a labor court in France. Using adata set of individual labor disputes brought to French courts over the years 1996 to 2003,we examine the impact of labor court activity on labor market flows. First, we present asimple theoretical...

Does competitive pressure foster innovation? In addressing this important question, priorstudies ignored a distinction between discrete innovation aiming at entirely new technologyand continuous improvement consisting of numerous incremental improvements andmodifications made upon the existing...

Human capital and deferred compensation might explain why firms employ but do nothire older workers. Adjustments of wage-tenure profiles for older new entrants areexplored in the context of deferred compensation. From an equity theory perspective,such adjustments might lead to adverse incentive...

We re-examine the labor donation theory of not-for-profits and show that these organizations may exist notnecessarily because motivated workers prefer to work in them, or that they dominate for-profits in terms ofwelfare, but because the excess supply of motivated workers makes the non-profit...

This paper determines the cost of employee stock options (ESOs) to shareholders. I present a pricing method that seeks to replicate the empirics of exercise and cancellation as good as possible. In a first step, an intensity-based pricing model of El Karoui and Martellini is adapted to the needs...

This paper experimentally investigates the impact of different pay and relative performance information policies on employee effort. We explore three information policies: No feedback about relative performance, feedback given halfway through the production period, and continuously updated...