We study how AI affects compensation and job design when performance depends on workers' non-contractible effort. In a principal–agent model with limited liability, AI reduces effort costs but disproportionately lowers the cost of achieving satisfactory performance. This raises the incentive...

Profit shifting by multinational corporations is thought to reduce tax revenue around the world. This paper provides a comprehensive analysis of the introduction of standard regulations to limit profit shifting. Using administrative tax and customs data from Chile, we find that the reform was...

Despite the central role of corporate tax departments in managing multinational enterprises' (MNEs) global tax positions, little is known about how their internal design shapes corporate tax behavior. Drawing on hand-collected data on more than 8,000 tax employees across 309 publicly listed...

We establish three facts about work from home (WFH) in the United States. First, employees WFH more often at younger firms – almost twice as often at firms founded after 2015 than at firms founded before 1990. Second, employees working under younger CEOs have higher levels of WFH. The average...

We study how AI affects compensation and job design when performance depends on workers' non-contractible effort. In a principal-agent model with limited liability, AI reduces effort costs but disproportionately lowers the cost of achieving satisfactory performance. This raises the incentive...

The large-scale rise of working from home (WFH) has granted workers unprecedented autonomy over how they allocate their time and effort, while weakening employers' monitoring ability. We ask whether firms use performance-based compensation to align workers' incentives when adopting WFH. To...