We present evidence from a firm level experiment in which we engineered an exogenous change in managerial compensation from fixed wages to performance pay based on the average productivity of lower-tier workers. Theory suggests that managerial incentives affect both the mean and dispersion of...

This paper offers a new explanation of the gender pay gap in leadership positions by examining the relationship between managerial bonuses and company performance. Drawing on findings of gender studies, agency theory, and the leadership literature, we argue that the gender pay gap is a...

Working from home reduces real-time visibility of employees within the physical space of the workplace. This makes it difficult to monitor employees' work behavior. Employers may instead monitor employees' outputs and provide incentives through performance pay. The crucial question is what type...

Working from home reduces real-time visibility of employees within the physical space of the workplace. This makes it difficult to monitor employees' work behavior. Employers may instead monitor employees' outputs and provide incentives through performance pay. The crucial question is what type...

A growing number of econometric examinations show that works councils substantially shape the personnel policy of firms in Germany. Firms with works councils make greater use of various HRM practices. This gives rise to the question of whether employers view the shaping of personnel policy...

We report the first results for Korean firms on the incidence, diffusion, scope and effects of diverse employee financial participation schemes, such as Profit Sharing Plans (PSPs), Employee Stock Ownership Plans (ESOPs), Stock Option Plans (SOPs) and Team Incentive Plans (TIPs). In do doing, we...