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Group-based incentive pay is attractive in contexts where production is complex and interdependent, yet freeriding is a paramount concern. We assess the introduction of group-based performance pay in a modern industrial production setting using difference-in-difference estimation. Performance...
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individual performances over time provide effective incentives for employee effort …
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In Germany, around 80 to 90 percent of all inventions are created by employees. This leads to a conflict between the German principles of employment law and patent law. According to employment-law principles, the results of work are the property of the employer; the salary compensates the...
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Empirical research on the principal-agent model has focused almost exclusively on the incentives provided to chief … executive officers. However, the model is also directly relevant to the incentives provided to other top executives. Furthermore …, the extent to which other executives will be provided with high-powered incentives to maximize firm profits depends …
Persistent link: https://www.econbiz.de/10014027832
We run two field experiments within a large retail chain showing that the effectiveness of performance pay crucially hinges on prior job experience. Introducing sales-based performance pay for district- and later for store-managers, we find negligible average treatment effects. Based on surveys...
Persistent link: https://www.econbiz.de/10011916585
We develop and estimate a generalized labour supply model that incorporates work effort into the standard consumption-leisure trade-off. We allow workers a choice between two contracts: a piece rate contract, wherein he is paid per unit of service provided, and a mixed contract, wherein he...
Persistent link: https://www.econbiz.de/10009007808
Empirically, compensation systems generate substantial effort despite weak monetary incentives. We consider reciprocal … motivations as a source of incentives. We solve for the optimal contract in the basic principal-agent problem and show that … sources of incentives to best induce effort from the agent. Analyzing extended versions of the model allows us to examine how …
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