Employees spend a considerable amount of their working time enjoying on-the-job leisure. This demonstrates a management control problem but can also function as a novel domain for bonuses. In this study, I investigate the effect of an unconditional bonus (gift) in the form of more leisure time...

A central question in designing optimal policies concerns the assignment of individuals with different observable characteristics to different treatments. We study this question in the context of increasing workers' performance by using targeted incentives based on measurable worker...

A central question in designing optimal policies concerns the assignment of individuals with different observable characteristics to different treatments. We study this question in the context of increasing workers' performance by using targeted incentives based on measurable worker...

I study the performance effect of removing performance pay across various incentive domains. Subjects in the laboratory experiment receive performance pay in either the monetary or time domain during the first working period, after which the incentive is removed in the second working period....

Using current performance to set future targets can discourage effort and reduce performance. Our study examines whether this ratchet effect also undermines incentives of high-level managers and executives. We use a dynamic model to show that empirical tests used in prior literature can falsely...