In this study, we explore the relation between job characteristics and employees' self-evaluations of performance in comparison to their colleagues' performance. Making use of unique individual panel data of ten large firms in Germany's chemical industry, we focus on monetary rewards (bonus...

The use of tangible rewards in the form of non-cash incentives with a monetary value has become increasingly common at organizations (Peltier, Schultz and Block 2005). Despite their use, the behavioral and performance effects of tangible rewards have received minimal research attention. Relative...

Economists studying innovation and technological change have made significant progress towards understanding firms’ profit incentives as drivers of innovation. However, innovative performance in firms should also depend heavily on the pecuniary and nonpecuniary motives of the individuals...

We investigate how the convexity of a firm’s incentives interacts with worker overconfidence to affect sorting decisions and performance. We demonstrate experimentally that overconfident employees are more likely to sort into a non-linear incentive scheme over a linear one, even though this...