Recent thinking has emphasized the importance of consistency in a firm?s compensation policy. By starting from Williamson?s ideas about idiosyncratic exchange, this view can be supplied with some theoretical foundation. At the same time, the consistency view can be applied to a number of...

This paper studies a retail chain that introduced a sales incentive plan that rewarded for exceeding a sales target and subsequently cut the incentive intensity in addition to increasing the target. Utilizing monthly panel data for 54 months for all 53 units of the chain the paper shows that the...

We estimate of the determinants of performance appraisal, profit sharing and employee share ownership schemes for a representative sample of German establishments. The results demonstrate that foreign owned establishments make more use of each of these HRM practices than domestically owned...

Recent research has shown that the unexplained gender wage gap is smaller in establishments where a works council is present. The finding raises the question of whether establishment-level codetermination reduces gender wage discrimination or whether it reduces a wage differential that reflects...

We investigate the relationship between co-determination at the plant level and paid vacation in Germany. From a legal perspective, works councils have no impact on vacation entitlements, but they can affect their use. Employing data from the German Socio-Economic Panel (SOEP), we find that male...

We use an experiment to evaluate the effects of participatory management on firm performance. Participants are randomly assigned roles as managers or workers in firms that generate output via real effort. To identify the causal effect of participation on effort, workers are exogenously assigned...

In this paper, we investigate the effect of benefit generosity on claim duration and temporary benefits paid among temporary disability claims for workers' compensation. While previous studies have focused on natural experiments created by one-time large changes in minimum or maximum weekly...

Much of the empirical literature on PRP (Performance Related Pay) focuses on a question of whether the firm can increase firm performance in general and enterprise productivity in particular by introducing PRP and if so, how much. However, not all PRP programs are created equal and PRP programs...

Much of the empirical literature on PRP (Performance Related Pay) focuses on a question of whether the firm can increase firm performance in general and enterprise productivity in particular by introducing PRP and if so, how much. However, not all PRP programs are created equal and PRP programs...

The aim of this paper is to examine profit sharing using Finnish linked employer-employee data in 1996-2000. The use of profit sharing is predicted by the share of the highly educated, R&D and capital intensity, business risk, firm size and the desire to have some stability in the skilled...