This paper uses German survey data on married couples to examine the association of performance pay at work and subsequent separation or divorce. Despite extensive controls, performance pay remains associated with an increased probability of separation or divorce. Yet, the results are entirely...

This paper uses German survey data on married couples to examine the association of performance pay at work and subsequent separation or divorce. Despite extensive controls, performance pay remains associated with an increased probability of separation or divorce. Yet, the results are entirely...

The authors estimate the determinants of five types of variable payment schemes using panel data on German establishments in 1994 and 1996. Women were disproportionately included in schemes based on individual productivity and on profit-sharing, but not in those based on work group productivity....

The 1/n problem potentially limits the effectiveness of profit sharing in motivating workers. While the economic literature suggests that reciprocity can mitigate this problem, it remains silent on the optimal degree of reciprocity. We present a representative model demonstrating that...

We present a model showing that firms with interdependent worker productivity (team production) have a higher cost of absence and as a consequence will spend additional resources on monitoring absence. As a result, firms with team production should have lower absence rates, all else equal. Using...

This paper presents a model showing that profit sharing is subject to the 1/N problem in the case of independent worker productivity but not in the case of interdependent worker productivity. This implies the role of firm size on the likelihood of profit sharing will differ by the nature of the...

Theory presents two channels through which profit sharing can cause workers to increase their coworkers' productivity: greater cooperation and increased peer pressure. This paper argues that these generate opposite influences on coworker relations, and that which dominates varies according to...

The 1/n problem potentially limits the effectiveness of profit sharing in motivating workers. While the economic literature suggests that reciprocity can mitigate this problem, it remains silent on the optimal degree of reciprocity. We present a representative model demonstrating that...

The authors estimate the determinants of five types of variable payment schemes using panel data on German establishments in 1994 and 1996. Women were disproportionately included in schemes based on individual productivity and on profit-sharing, but not in those based on work group productivity....