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We address empirically the issues of the optimality of simple linear compensation contracts and the importance of asymmetries between firms and workers. For that purpose, we consider contracts between the French National Institute of Statistics and Economics (Insee) and the interviewers it hired...
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, i.e. they have heterogeneous unobservable intrinsic motivation levels. I derive the optimal mechanism (allocation rule …
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agents have unobservable intrinsic motivation levels. I show that the non-contractibility of effort (asymmetric information …
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view intrinsic motivation and reputation as stronger motivators than incentive pay. They believe pay matters to CEOs not to …
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