Purpose – The purpose of this paper is to introduce a new data source available for researchers with interest in human resources management (HRM) and personnel economics, the Linked Personnel Panel (LPP). Design/methodology/approach – The LPP is a longitudinal and representative...

Purpose: We analyze the role of works councils for the use of performance appraisals (PA). We distinguish between the incidence of PA systems as intended by the firm and their actual implementation on the level of the individual employee. Design/methodology/approach: We draw on two...

A model is analyzed in which agents exert effort to create innovations within an organization. When payments are infeasible, the decision on the implementation of a proposal is shown to be made by simple monotonic decision rules. Organizational structure is then determined by a collection of...

We investigate wage differences between newly hired and incumbent employees in identical functions using detailed personnel data from a large number of banks. We first show in a formal model of job switching that (i) incumbents earn less than new recruits when human capital is mostly general but...

We conduct a field experiment in a naturally occurring labor environment and track whether the performance of workers responds to unexpected wage increases. Specifically, we investigate how the timing of wage increases affects efforts. We find that workers’ performance is substantially higher...

A real-effort experiment is investigated in which supervisors have to rate the performance of individual workers who in turn receive a bonus payment based on these ratings. We compare a baseline treatment in which supervisors are not restricted in their rating behavior to a forced distribution...

We investigate the relationship between tournament prices and effort choices in the presence of favoritism. High tournament prizes can decrease agents’ effort supply when the choice of the winner is not perfectly objective but affected to some extent by personal preferences of an evaluator.