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Producer Protection Legislation and Termination Damages in the Presence of Contracting Frictions

Wu, Steven Y. - Institute for the Study of Labor (IZA) - 2009

contracts are prematurely terminated. In the absence of contracting frictions that prevent contractors from redesigning … contracts to accommodate exogenous policy changes, PPLD would not be distortionary or redistributive. If contracting frictions …

Persistent link: https://www.econbiz.de/10005103260

Authority and Incentives in Organizations

Kräkel, Matthias - Institute for the Study of Labor (IZA) - 2013

The paper analyzes how the choice of organizational structure leads to the best compromise between controlling behavior based on authority rights and minimizing costs for implementing high efforts. Concentrated delegation and hierarchical delegation turn out to be never an optimal compromise. If...

Persistent link: https://www.econbiz.de/10010632999

Bonus Culture: Competitive Pay, Screening, and Multitasking

Benabou, Roland; Tirole, Jean - Institute for the Study of Labor (IZA) - 2013

This paper analyzes the impact of labor market competition and skill-biased technical change on the structure of compensation. The model combines multitasking and screening, embedded into a Hotelling-like framework. Competition for the most talented workers leads to an escalating reliance on...

Persistent link: https://www.econbiz.de/10010635587

Job and Wage Mobility in a Search Model with Non-Compliance (Exemptions) with the Minimum Wage

Eckstein, Zvi; Ge, Suqin; Petrongolo, Barbara - Institute for the Study of Labor (IZA) - 2006

? To answer this question we are confronted from the data with a prevalent non-compliance and exemptions from the minimum …) minimum wages, with potentially imperfect compliance or exemptions; and, (iii) exogenous wage growth on-the-job. We use panel …, in particular, the extent of non-compliance/exemptions to the minimum wage. The model is solved numerically and we use …

Persistent link: https://www.econbiz.de/10005566615

Second-Degree Moral Hazard in a Real-World Credence Goods Market

Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - Institute for the Study of Labor (IZA) - 2013

Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard – the tendency of the supply...

Persistent link: https://www.econbiz.de/10011156456

Universal Basic Income versus Unemployment Insurance

Fabre, Alice; Pallage, Stéphane; Zimmermann, Christian - Institute for the Study of Labor (IZA) - 2014

In this paper we compare the welfare effects of unemployment insurance (UI) with a universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should do...

Persistent link: https://www.econbiz.de/10011094077

Understanding Severance Pay

Parsons, Donald O. - Institute for the Study of Labor (IZA) - 2013

Severance pay, a fixed-sum payment to workers at job separation, has been the focus of intense policy concern for the last several decades, but much of this concern is unearned. The design of the ideal separation package is outlined and severance pay emerges as a natural component of job...

Persistent link: https://www.econbiz.de/10010884124

Health Effects of Containing Moral Hazard: Evidence from Disability Insurance Reform

Garcia-Gomez, Pilar; Gielen, Anne C. - Institute for the Study of Labor (IZA) - 2014

We exploit an age discontinuity in a Dutch disability insurance (DI) reform to identify the health impact of stricter eligibility criteria and reduced generosity. Women subject to the more stringent rule experience greater rates of hospitalization and mortality. A €1,000 reduction in annual...

Persistent link: https://www.econbiz.de/10010886130

Moral Hazard and Less Invasive Medical Treatment for Coronary Artery Disease: The Case of Cigarette Smoking

Margolis, Jesse; Hockenberry, Jason; Grossman, Michael; … - Institute for the Study of Labor (IZA) - 2014

Comparisons of the effectiveness of two common procedures for Coronary Artery Disease: Percutaneous Coronary Intervention (PCI) and Coronary Artery Bypass Graft (CABG). Evidence indicates that CABG – the more invasive procedure – leads to superior long term outcomes for otherwise similar...

Persistent link: https://www.econbiz.de/10010959543

Ability Dispersion and Team Performance: A Field Experiment

Hoogendoorn, Sander M.; Parker, Simon C.; Praag, Mirjam … - Institute for the Study of Labor (IZA) - 2012

This paper studies the impact of diversity in cognitive ability among members of a team on their performance. We conduct a large field experiment in which teams start up and manage real companies under identical circumstances. Exogenous variation in – otherwise random – team composition is...

Persistent link: https://www.econbiz.de/10010959852