Similar Search Results

Incentives in Competitive Search Equilibrium and Wage Rigidity

Moen, Espen R.; Rosén, Åsa - 2006

the responsiveness of the unemployment rate to changes in macroeconomic variables. Most importantly, private information … increases the responsiveness of the unemployment rate to changes in the general (type and effort independent) productivity level …. If the changes also affect the information structure, the responsiveness of the unemployment rate may be large even if …

Persistent link: https://www.econbiz.de/10014060646

Insurance and asymmetric information in wage contracts : evidence from an online experiment

Herbst, Daniel - 2025

For workers facing uncertain output, fixed-wage contracts provide implicit insurance compared to self-employment or performance-based pay. But like any insurance product, these contracts are prone to market distortions through moral hazard and adverse selection. Using a model of wage contracts...

Persistent link: https://www.econbiz.de/10015414158

Evidence on Incentive Effects of Subjective Performance Evaluations

Riphahn, Regina T. - 2011

The authors investigate the effect of managerial performance evaluation styles on employee work effort. Using panel data on 4,080 employees in a Swiss unit of an international company for the period 1999-2002, they test two hypotheses using paid and unpaid overtime work as effort indicators. The...

Persistent link: https://www.econbiz.de/10013125219

Optimal incentive contracts when workers envy their boss

Dur, Robert A. J.; Glazer, Amihai - 2006

A worker's utility may increase with his income, but envy can make his utility decline with his employer's income. This article uses a principal-agent model to study profit-maximizing contracts when a worker envies his employer. Envy tightens the worker's participation constraint and so calls...

Persistent link: https://www.econbiz.de/10011335185

Bonus and Malus in Principal-Agent Relations with Fixed Pay and Real Effort

Kirstein, Annette - 2008

Drawing on the proposer-responder game examined by Andreoni, Harbaugh, and Vesterlund (2003), I experimentally test four variations of a principal-agent relationship with fixed pay and real effort. Depending on the treatment, the principal can voluntarily, but at her own expense, (1) only reward...

Persistent link: https://www.econbiz.de/10012769841

Delegation and Incentive Compensation

Nagar, Venky - 2001

Top management faces two key organizational design choices: (1) how much authority to delegate to lower-level managers, and (2) how to design incentive compensation to ensure that these managers do not misuse their discretion. Although theoretical accounting literature has emphasized the joint...

Persistent link: https://www.econbiz.de/10014034777

Performance pay and applicant screening

Jirjahn, Uwe; Mohrenweiser, Jens - 2017

Using German establishment data, we show that the relationship between intensity of performance pay and intensity of applicant screening depends on the nature of production. In establishments with increased multitasking, performance pay is positively associated with applicant screening. By...

Persistent link: https://www.econbiz.de/10011631541

Does group-based incentive pay lead to higher productivity? : evidence from a complex and interdependent industrial production process

Frederiksen, Anders; Hansen, Daniel Baltzer Schjødt; … - 2022

Group-based incentive pay is attractive in contexts where production is complex and interdependent, yet freeriding is a paramount concern. We assess the introduction of group-based performance pay in a modern industrial production setting using difference-in-difference estimation. Performance...

Persistent link: https://www.econbiz.de/10012804137

Lucifora, Claudio - 2015

Many firms offer employees a remuneration package that links pay to performance as a means of motivation. It also improves efficiency and reduces turnover and absenteeism. The effects on productivity depend on the type of scheme employed (individual or group performance) and its design...

Persistent link: https://www.econbiz.de/10011431686

Performance pay and applicant screening

Jirjahn, Uwe; Mohrenweiser, Jens - 2015

Using German establishment data, we show that the relationship between performance pay and intensity of applicant screening depends on the nature of production. In establishments with increased multitasking, performance pay is associated with a greater intensity of applicant screening. In...

Persistent link: https://www.econbiz.de/10011348846