I characterize the effects of empirically observed managerial incentives on long-run oligopolistic competition. When managers have a preference for smooth time-paths of profits – as revealed by the empirical literature on ‘income smoothing’ – manager-led firms can sustain collusive...

Recent analyses of wage bargaining has emphasized the distinction between insiders and outsiders, yet one typically assumes that insiders and recently hired outsiders are paid the same wage. We consider a model where the starting wage for outsiders may be lower that the insider wage, but...

We obtained the results for Japanese firms on the effects of profit-sharing, information-sharing and ESOPs by estimating production functions using a panel data set. The contribution of this paper is to identify the presence of a profit-sharing system and an information sharing system by...

Recent growth in fringe benefits is attributable to increases in both legally required and voluntarily provided benefits. Therefore, predictions based upon the conventional firm-level analysis, in which non-wage payments are assumed to be entirely exogenous, should be reexamined.

The paper constructs an asymmetric information model to investigate the efficiency and equity cases for government mandated benefits. A mandate can improve workers' insurance, and may also redistribute in favour of more "deserving" workers. The risk is that it may also reduce output. The more...

A model of employment relation is provided in which agents choose whether to seek self-esteem through work. When they do, they develop an intrinsic motivation to effort. Depending on non-wage characteristics of the job the employer wants to fill, she can encourage this intrinsic motivation by a...

This paper examines the relationship between the replacement of CEO's and corporate performance in Danish firms. We use a unique longitudinal data set to test the hypothesis that CEO turnover is inversely related to firm performance. Evidence is provided using several measures of corporate...

The purpose of this paper is to examine the seterminants of the variation in Czech managers' pay levels. Among the questions we attempt to answer are: Are the managers in state-owned firms compensated differently than those in private owned firms? How much of the difference in pay is explained...

This paper is a study of the function of appointments of referred workers as a way of motivating employees. Earlier research has stressed out that infromation about the ability of the referred applicant can explain why appointments through contacts are made. In this paper it is shown that it can...

The purpose of this paper is to test some predictions from the literature concerning firms' choices of methods of pay for their managerial employees, and to provide estimates of the effects of performance pay on individual productivity using individual earnings as a mesure of productivity.