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Economic theory suggests that performance pay may serve as an effective screening device to attract productive agents. The existing evidence on the self-selection of agents is largely limited to job tasks where performance is driven by routine, well-defined procedures. This study presents...
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In this paper, I empirically investigate the impact of an organization's reliance on collaborative creativity on the … design of incentive systems. In creativity-reliant firms, i.e., firms for which the primary source of value creation lies in … the creativity of their core employees, incentive system design is particularly challenging, since the nature of creative …
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This work contributes to the literature demonstrating an important role for psychological traits in labor market decisions. We show that West German workers with an internal locus of control sort into jobs with performance appraisals. Appraisals provide workers who believe they control their...
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