Several empirical studies have challenged tournament theory by pointing out that (1) there is considerable pay … variation within hierarchy levels, (2) promotion premiums only in part explain hierarchical wage differences and (3) external … recruitment is observable on nearly any hierarchy level. We explain these empirical puzzles by combining job-promotion tournaments …

in a business group hierarchy affects workers' wages. To acknowledge that ownership linkages are not onedirectional, we … ultimate owner of a business group on workers' wages. To explain this finding, we develop a monitoring-based theory of business …

industry, we focus on monetary rewards (bonus payments and wage increases), level of hierarchy and weekly working hours as well … of working hours, and some extent of hierarchy levels and monetary rewards. We find less evidence for our hypotheses …

-sector workplaces in 32 countries, we document conditional correlations between ER and the depth of hierarchy that are consistent with … changes. Taken together, our findings suggest that ER increases the depth of firm hierarchy by facilitating the flow of …