We look at the economic functions of firms, contracts, and markets and characterize the optimal scope of the firm. Governance structures appear as equilibria and are compared in terms of production costs - determined by a tradeoff between standardization and adaptation - and adjustment costs -...

We look at the economic functions of firms, contracts, and markets and characterize the optimal scope of the firm. Governance structures appear as equilibria and are compared in terms of production costs - determined by a tradeoff between standardization and adaptation - and adjustment costs –...

In this paper we present results from a large scale real effort experiment in an online labor market investigating the effect of performance pay and two common leadership techniques: Positive expectations and specific goals. We find that positive expectations have a significant negative effect...

In this paper we present results from a large scale real effort experiment in an online labor market investigating the effect of performance pay and two common leadership techniques: Positive expectations and specific goals. We find that positive expectations have a significant negative effect...

Despite the potential importance of awards as a possible career catalyst, the theoretical and empirical research on awards is still in its infancy. Here, we address this notable shortcoming in the economic literature by exploring data from German youth football. Analyzing whether an early career...

This paper aims at explaining two stylized facts of the Lost Decade in Japan: rising wage inequalities and increasing firm-level productivity differentials. We build a model where firms can choose between efficiency wages with endogenous effort and competitive wages, and show that it can...

This research presents evidence on how the impact of industry concentration and unionism affect the Portuguese wage levels. The influence of employer association is also considered. We use sector information - two-digit level disaggregation of "Classificação das Actividades Económicas" -, and...

Human capital and deferred compensation might explain why firms employ but do nothire older workers. Adjustments of wage-tenure profiles for older new entrants areexplored in the context of deferred compensation. From an equity theory perspective,such adjustments might lead to adverse incentive...