Economic theorists have devoted considerable attention to analyzing models of closely related incentive contracting problems that arise in the study of public procurement, private procurement, regulation, the theory of the firm, the theory of organizations, and managerial compensation. The...

This chapter surveys the contributions of laboratory experiments to labor economics. We begin with a discussion of methodological issues: when (and why) is a lab experiment the best approach; how do laboratory experiments compare to field experiments; and what are the main design issues? We then...

Employers structure pay and employment relationships to mitigate agency problems. A large literature in economics documents how the resolution of these problems shapes personnel policies and labor markets. For the most part, the study of agency in employment relationships relies on highly...