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Our paper evaluates recent regulatory proposals mandating the deferral of bonus payments and claw-back clauses in the financial sector. We study a broadly applicable principal agent setting, in which the agent exerts effort for an immediately observable task (acquisition) and a task for which...
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knowledge economy. Corporate taxes and labor income taxes can affect both the firm owner’s and the employee’s incentives to … incentives and reductions in the tax rate levied on profit sharing schemes. This complementarity holds, albeit with different … relative importance for the two tax incentives, also with non-deductible labor costs, with a stochastic innovation value …
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responsive to agents' performance. Agents' performance is higher in the presence of goal setting despite weaker incentives. We … incentives and wage-irrelevant goals can be optimal. The pervasive use of non-monetary incentives in the workplace may help … account for previous empirical findings suggesting that firms rely on unexpectedly weak monetary incentives. …
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that show, in a very general setting, that the choice between work effort and leisure under given linear incentives depends …
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