While performance pay is associated with increased worker productivity and earning, the relative size of the sorting and incentive effects remains in doubt. Resolving this doubt is important as incentive effects imply welfare increases that may be absent in sorting. This paper uses UK labour...

In initial cross-section estimates using data from the 1991–94 British Household Panel Study, the authors find that union members had lower overall job satisfaction than non-union members, and public sector workers had higher satisfaction than private sector workers. Controlling for...

This is the first study to focus on how unions affect the likelihood of plant closures in Australia. Australia is of special interest in this connection, the authors argue, because of its unique industrial relations institutions, which, at the time of the study (1990–95), limited the...

We are the first to confirm that sufficient cost convexity in a Stackelberg model generates profitable mergers between two leaders and between two followers. Moreover, the degree of convexity required for leaders to merge is generally far smaller than that required for followers. Most...

This paper models the behavior of team members in a consistent conjectures equilibrium. When subject to scale economies, team members produce more than Nash and when subject to scale diseconomies, they produce less than Nash. Moreover, even when effort levels of team members are perfect...

We show that the reported tendency for performance pay to be associated with greater wage inequality at the top of the earnings distribution applies only to white workers. This results in the white-black wage differential among those in performance pay jobs growing over the earnings distribution...

Using panel data, we demonstrate a 50% increase in research productivity following a dramatic increase in the piece rate paid for articles by a major Chinese University. The increased productivity comes exclusively from those who were already research active.

This paper identifies the unique strategic issues of cross-border mergers in a mixed oligopoly showing that the presence of a welfare maximizing public firm increases the incentive for such mergers. The well-known merger paradox that two-firm mergers are rarely profitable is substantially...