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Empirically, compensation systems generate substantial effort despite weak monetary incentives. We consider reciprocal …-WERS workplace compensation data set to confirm the predictions of our extended model. -- Optimal contracts ; reciprocity …
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The existing literature on inequality between private and public sectors focuses on cross-section differences in earnings levels. A more general way of looking at inequality between sectors is to recognize that forward-looking agents will care about income and job mobility too. We show that...
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