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...

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...

How can we increase the level of innovation in Small and Medium-sized Enterprises (SMEs)? Can improving internal organizational culture through Human Resource Management (HRM) methods boost the innovativeness of SMEs? These are some of the questions that currently preoccupy us. The aim of this...