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Equilibrium wage and employment dynamics in a model of wage posting without commitment

Coles, Melvyn G.; Mortensen, Dale T. - 2011

A rich but tractable variant of the Burdett-Mortensen model of wage setting behavior is formulated and a dynamic market equilibrium solution to the model is defined and characterized. In the model, firms cannot commit to wage contracts. Instead, the Markov perfect equilibrium to the wage setting...

Persistent link: https://www.econbiz.de/10010278491

Managerial incentives and favoritism in promotion decisions: Theory and field evidence

Berger, Johannes; Herbertz, Claus; Sliwka, Dirk - 2011

This paper investigates the effects of managerial incentives on favoritism in promotion decisions. First, we theoretically show that favoritism leads to a lower quality of promotion decisions and in turn lower efforts. But the effect can be mitigated by pay-for-performance incentives for...

Persistent link: https://www.econbiz.de/10010278492

Beyond the DSGE straitjacket

Pesaran, Hashem; Smith, Ron P. - 2011

Academic macroeconomics and the research department of central banks have come to be dominated by Dynamic, Stochastic, General Equilibrium (DSGE) models based on micro-foundations of optimising representative agents with rational expectations. We argue that the dominance of this particular sort...

Persistent link: https://www.econbiz.de/10010278494

Risk, institutions and growth: Why England and not China?

Greif, Avner; Iyigun, Murat; Sasson, Diego - 2011

We analyze the role of risk-sharing institutions in transitions to modern economies. Transitions requires individual-level risk-taking in pursuing productivity-enhancing activities including using and developing new knowledge. Individual-level, idiosyncratic risk implies that distinct...

Persistent link: https://www.econbiz.de/10010278525

The impact of worker effort on public sentiment towards temporary migrants

Epstein, Gil S.; Venturini, Alessandra - 2011

, real wages and capital owners' profits. We show that the acceptance of job offers by migrants result in the displacement in …-immigrant voter sentiment. Therefore, the favorable sentiment of the capital owners and the local population towards migrants may rise …

Persistent link: https://www.econbiz.de/10010278535

Consistency in organization (updated)

Schlicht, Ekkehart - 2011

modern compensation theory, but has not been extended to organization theory. The perspective sheds new light on several … topics in the theory of the firm, like the boundaries of the firm, the importance of fairness concerns within firms, the … attenuation of incentives, or the role of routines and incentives. It implies a perceptional theory of the firm that is realistic …

Persistent link: https://www.econbiz.de/10010278547

Addressing the legacy costs in an NDC reform: Conceptualization, measurement, financing

Holzmann, Robert; Jousten, Alain - 2010

The paper provides a framework for the conceptualization, definition and estimation of legacy costs that need to be addressed in a reform that transforms an unfunded defined contribution (NDB) scheme into a notional (or non-financial) defined contribution (NDC) scheme. As the new contribution...

Persistent link: https://www.econbiz.de/10010278557

How to deal with covert child labour, and give children an effective education, in a poor developing country

Cigno, Alessandro - 2011

As credit and insurance markets are imperfect, and given that intra-family transfers, and the way a child uses her time outside school hours, are private information, the second-best policy makes school enrollment compulsory, forces overt child labour below its efficient level (if positive), and...

Persistent link: https://www.econbiz.de/10010278558

Part-time unemployment and optimal unemployment insurance

Ek, Susanne; Holmlund, Bertil - 2011

A significant fraction of the labor force consists of employed workers who are part-time unemployed (underemployed) in the sense that they are unable to work as much as they prefer. This paper develops a search and matching model to study the design of optimal unemployment insurance in an...

Persistent link: https://www.econbiz.de/10010278573

Identification problems in personality psychology

Borghans, Lex; Golsteyn, Bart; Heckman, James J.; … - 2011

This paper discusses and illustrates identification problems in personality psychology. The measures used by psychologists to infer traits are based on behaviors, broadly defined. These behaviors are produced from multiple traits interacting with incentives in situations. In general, measures...

Persistent link: https://www.econbiz.de/10010278574