A key input to inventive activity is human capital. Hence it is important to understand the monetary incentives of …

talented workers leads to an escalating reliance on performance pay and other high-powered incentives, thereby shifting effort … incentives downward in order to extract rents. More generally, as declining market frictions lead employers to compete more …, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

An important lesson from the incentive literature is that explicit incentives may elicit dysfunctional and unintended …

This Paper examines optimal incentives and performance measurement in a setting where an agent has specific knowledge … choice of performance measures and incentives depends on the agent’s knowledge, environmental risk, technological uncertainty …

We document three changes in postwar US macroeconomic dynamics: (i) the procyclicality of labor productivity vanished …

pay. We analyse an equilibrium model where worker productivity is private information and show that the gains to the firms …

This Paper studies the provision of incentives in a large US training organization, which is divided into about 50 …