Performance-contingent pay raises productivity, yet in the German Socio-Economic Panel (SOEP) only about 16% of workers report receiving performance pay, with the incidence being roughly seven percentage points higher among university graduates than among non-graduates. This coexistence of low...

We investigate the determinants of states' policy capacity, defined as the ability of states to craft effective policies. Our model shows that the interaction between politicians' implementation decisions and bureaucrats' motivation to design effective policies can lead to the coexistence of...

This publication, based on contributions from members of the Cedefop community of apprenticeship experts, sheds light on how selected incentives for learners and employers participating in apprenticeships across Europe are designed, introduced and received by their target groups. The evidence...

Designing and administering effective national social protection systems have long been a challenge for policy makers worldwide. For decades, the principal objection to social protection policies was that they encouraged sloth. Today, voters and governments are less worried that taxes and social...

This paper investigates the impact of corporate ESG performance on internal pay gaps using data from Chinese A-share listed companies from 2013 to 2023. Our study finds that, after controlling for relevant variables and fixed effects for firms and years, corporate ESG performance significantly...

The Spanish Minimum Income scheme, introduced in 2020, offers beneficiaries a unique national guaranteed income as a last-resort benefit. However, the scheme's design featured a lack of work incentives for low earners, potentially leading to inactivity traps. To address this flaw the Spanish...

Achieving the EU's climate-neutrality goal will require deployment of high-integrity carbon removals alongside deep emission cuts. Carbon farming - implementation of climate-friendly practices for carbon sequestration, storage and soil emission reduction- offers scalable abatements with multiple...

Web surveys often suffer from low response rates when invitations are sent via email. We conducted an experiment testing the effects of a $5 Starbucks gift card incentive on response rates and survey results from an email-web survey of Gulf of Mexico recreational anglers. Half the sample was...

This study replicates and extends the analysis of belief elicitation methods conducted by Danz et al. (2022). The original paper scrutinizes the binarized scoring rule (BSR) method and its effectiveness in incentivizing truthful reporting. Using data from the original controlled laboratory...

Using a large-scale real effort experiment, we explore whether and how different peer assignment mechanisms affect worker performance and stress. Letting individuals choose whom to compare to increases productivity to the same extent as a targeted exogenous matching policy designed to maximize...

We analyze a public goods game with linearly increasing marginal returns to contributions, leading to a non-monotonic group payoff. By allowing the incentive to freeride to persist at all contribution levels, we preserve the usual social dilemma of voluntary public goods provision. We compare...

Questions about market power have become salient in macroeconomics. We consider the role of institutional structures in addressing these within a dynamic general equilibrium framework. Standard models account for monopoly profits as a lump-sum transfer to the representative agent. We label this...