The adoption of performance related pay schemes has become increasingly popular in the public sector of several countries. In the UK, the scheme designers favoured collective performance pay with the aim to foster cooperation across offices. The resulting team structure included several offices...

This paper addresses a lack of evidence on the impact of performance pay in the public sector by evaluating a pilot scheme of incentives in a major government agency. The incentive scheme was based on teams and covered quantity and quality targets, measured with varying degrees of precision. We...

We examine a situation where efforts on different tasks positively affect production but are not separately verifiable and where the manager (principal) and the worker (agent) have different ideas about how production should be carried out: agents prefer a less efficient way of production. We...

We examine a situation where efforts on different tasks positively affect production but are not separately verifiable and where the manager (principal) and the worker (agent) have different ideas about how production should be carried out: agents prefer a less efficient way of production. We...

How can a manager influence workers' activity while knowing little about it? This paper examines a situation where production requires several tasks, and the manager wants to direct production to achieve a preferred allocation of effort across tasks. However, the effort that is required for each...

Asymmetric information in procurement entails double marginalization. The phenomenon is most severe when the buyer has all the bargaining power at the production stage, while it vanishes when the buyer and suppliers’ weights are balanced. Vertical integration eliminates double marginalization...

The UK Universal Credit (UC) welfare reform simplified the benefits system whilst strongly incentivising a return to sustainable employment. Exploiting a staggered roll-out, we estimate the differential effect of entering unemployment under UC versus the former system on mental health. Groups...

Intergenerational persistence in studying for elite education is high across the world. We study the role that exposure to high school peers from elite educated families ('elite peers') plays in driving such a phenomenon in Norway. Using register data on ten cohorts of high school students and...

High school students from non-elite backgrounds are less likely to have peers with elite educated parents than their elite counterparts in Norway. We show this difference in social capital is a key driver of the high intergenerational persistence in elite education. We identify a positive elite...

Intergenerational persistence in studying for elite education is high across the world. We study the role that exposure to high school peers from elite educated families ('elite peers') plays in driving such a phenomenon in Norway. Using register data on ten cohorts of high school students and...