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Rank-order relative-performance evaluation, in which pay, promotion and symbolic awards depend on the rank of workers in the distribution of performance, is ubiquitous. Whenever firms use rank-order relative-performance evaluation, workers receive feedback about their rank. Using a real-effort...
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Whilst existing efficiency wage literature assumes detection probabilities of shirkers are exogenous, this paper finds … PRP, but with late payments in PRP falling short of pure wage arrangements. -- monitoring ; tenure ; efficiency wages …
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