The increasing competition in the labor market for human capital pushes firms to create better incentives to manage talented individuals. In this article, we model the optimal employment contract when two features of human capital are present: (i) private information of the employee about his...

"The spectacular growth of the software industry in some non-G7 economies has aroused both interest and concern. This paper addresses two sets of inter-related issues. First, we explore the determinants of these successful stories. We then touch upon the broader question of what lessons, if any,...

The increasing competition in the labor market for human capital pushes firms to create better incentives to manage talented individuals. In this article, we model the optimal employment contract when two features of human capital are present: (i) private information of the employee about his...

The spectacular growth of the software industry in some non-G7 economies has aroused both interest and concern. This paper addresses two sets of inter-related issues. First, we explore the determinants of these successful stories. We then touch upon the broader question of what lessons, if any,...

The spectacular growth of the software industry in some non-G7 economies has aroused both interest and concern. This paper addresses two sets of inter-related issues. First, we explore the determinants of these successful stories. We then touch upon the broader question of what lessons, if any,...

Motivating human capital in knowledge-intensive activities is a serious managerial challenge because it is difficult to link rewards to actions or performance. Firms instead might motivate knowledge workers by offering them opportunities to increase personal benefits (e.g., learning,...