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We show that long-term compensation is associated with higher pay in the financial industry and the legal sector. Then, using a detailed survey of law school graduates, we explore why firms use long-term compensation. We find that individuals with jobs that make them highly visible and that...
Persistent link: https://www.econbiz.de/10013064773
. This is not caused by monetary incentives per se since under both wage schemes it is profit-maximizing for agents to exert …
Persistent link: https://www.econbiz.de/10003863658
. This is not caused by monetary incentives per se since under both wage schemes it is profit-maximizing for agents to exert …
Persistent link: https://www.econbiz.de/10003854042
A long-standing earnings management hypothesis suggests that deflationary earnings management in a unionized setting should lead to concessions from the union during contract negotiations. However, little evidence exists to support this hypothesis. I assess the strategy of missing mean consensus...
Persistent link: https://www.econbiz.de/10013009212
This paper studies wage structure characteristics and their incentive effects within one firm. Based on personnel records and an employee survey, we provide evidence that wages are attached to jobs and that promotions play a dominant role as a wage determinant. We furthermore show that a...
Persistent link: https://www.econbiz.de/10011337995
We study how help can be fostered by means of a team bonus in the presence of rank-order tournaments. In a simple model we combine elements of relative rewards and a team bonus and study their effect on effort, help and sabotage. Quite intuitively the theoretical analysis suggests that team...
Persistent link: https://www.econbiz.de/10011997551
This paper formalizes the use of flexible labor contracts in an efficiency wage framework and derives market dualism as an endogenous outcome. By allowing temporary contracts to be either renewed or converted into permanent contracts, new theoretical insights emerge both on the equilibrium wage...
Persistent link: https://www.econbiz.de/10010251553
. This is not caused by monetary incentives per se since under both wage schemes it is profit-maximizing for agents to exert …
Persistent link: https://www.econbiz.de/10013158119
We study, theoretically and empirically, the effects of incentives on the self-selection and coordination of motivated …). Agents differ in their motivation to exert social effort. Our model predicts that lowering incentives for selfish effort in … prediction in a lab experiment allowing us to cleanly separate the selection effect from other effects of low incentives. Results …
Persistent link: https://www.econbiz.de/10012591754
We study, theoretically and empirically, the effects of incentives on the self-selection and coordination of motivated …). Agents differ in their motivation to exert social effort. Our model predicts that lowering incentives for selfish effort in … prediction in a lab experiment allowing us to cleanly separate the selection effect from other effects of low incentives. Results …
Persistent link: https://www.econbiz.de/10012599052