Search results for "Incentive"
showing 10 items of 297 documents
The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries
2016
This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in some firms may convey to other CEOs that they too may be able to receive such incentives and rewards if they emulate the incentivized and rewarded CEOs. In a longitudinal study across 22 nations over a 5-year period, we find that the higher proportion of CEOs in a country are awarded long-term equity-based incentive compensation, the greater future real GDP growth, particularly in collectivist co…
Work Incentive and Productivity in Spain
2016
Work incentives are closely related to production performance. This paper presents evidence that the value added of a firm increases when relative labor costs rise, or the level of unemployment increases. Both circumstances imply evidence in favor of the efficiency wage model. This theory is consistent with the views of many managers and personal administrators, who tend to ascribe primary importance to wage setting as an incentive to increase effort. We use a micro panel data set of Spanish manufacturing firms, during the period 2004–2009, to simultaneously estimate a stochastic frontier of a firm’s value added and the inefficiency determinants. The data source is published in the Spanish …
Employment protection : its effects on different skill groups and on the incentive to become skilled
2005
Summary Employment protection affects labour market outcomes and hence the incentive to acquire skills. Using a matching model with two education levels in which workers decide ex-ante on their skill formation, it is shown that employment protection can raise the fraction of skilled workers. This will be the case if workers obtain a sufficiently large fraction of the rent created by skill formation. Furthermore, it will be shown that high-skilled workers face shorter unemployment duration and lower dismissal probabilities.
Discrimination by microcredit officers: Theory and evidence on disability in Uganda
2015
This paper studies the relationship between a microfinance institution (MFI) and its loan officers when officers discriminate against a particular group of micro-entrepreneurs. Using survey data from Uganda, we provide evidence that loan officers are more biased than other employees against disabled micro-entrepreneurs. In line with the evidence, we build an agency model of a non-profit MFI and a biased loan officer in charge of granting loans. Since incentive schemes are costly and the MFI's budget is limited, the MFI faces a trade-off between combating discrimination and granting loans. We show that the optimal incentive premium is a non-decreasing function of the MFI's budget. Moreover, …
Culture and team production
2018
Abstract This paper addresses theoretically the question whether culture has an effect on economic performance in team production, and what would be an optimal team culture. The members of a team are guided both by economic incentives and by personal norms, weighed according to their prevailing level of materialism. We assume that personal norms evolve following a dynamic driven by a combination of psychological mechanisms such as consistency and conformism. The different vectors of materialism, consistency and conformism shared by the group result in a continuum of cultures characterized by different combinations of individualism and collectivism. Team culture turns out to be a fundamental…
Strategic Responses: A Survey Experiment on Opposition to Pension Reforms*
2013
The responses given in opinion polls on future policy reforms reflect both subjective expectations and preferences. We disentangle these factors using data from a controlled survey experiment conducted in Germany. At the time of the experiment, an increased retirement age had been proposed as part of a pension reform. Thus, the survey respondents faced an incentive to give biased responses. By understating their expected work ability at the age of retirement, they could make the increase of the retirement age a less attractive policy option. We find evidence for such strategic response behavior, and this strategic bias appears to be stronger in former communist East Germany.
AN EXPERIMENTAL TEST ON RETIREMENT DECISIONS
2007
I. INTRODUCTION The reform of social security systems is now one of the main issues on the economic policy agenda of most industrialized countries. It is widely considered that, unless serious changes take place, the aging of the population implying a rise in the number of retirees relative to that of workers will threaten the viability, of pay-as-you-go public pension systems in the long run. This threat is being reinforced by the progressive reduction in the retirement age of the working population. The central reforms that are being proposed to neutralize these future financing problems are the raising of the contribution rate, the decreasing of pension benefits, or/and the delay of the …
Bioenergy chain building: a collective action perspective
2014
Depletion of natural resources has become a key issue on the European policy agenda. Bottom-up measures have emerged in several countries with a view to promoting awareness campaigns and environmental sustainability, with the agenda set by individuals who start up collective initiatives at the local level. Such collective action provides an incentive to free-ride on the contribution of others. Social norms and the consequent behavior of individuals involved in collective action assume a key role in ensuring sustainable use of a public good, achieving significant, long-lasting success. The present study aims to ascertain which determinants most affect farmers’ willingness to contribute to co…
Tax authority to the European Parliament?
1995
In this paper we analyze whether countries of the EC community should plead for a decentralized system to finance the European funds rather than using a uniform tax imposed by the European parliament. The analysis is within a multistage game-theoretic framework in which the implication of the financing system of a confederation on the investment behavior in the respective states is considered. The paper is in the tradition of the literature which claims that from a view of global efficiency property-rights structures inducing ex-post efficient allocations may be worse than a system leading to an ex-post inefficient allocation. For this specific economic issue we elucidate the tradeoff betwe…
Monetary incentives, motivational orientation and affective commitment in contact centers. A multilevel mediation model
2020
Abstract High quality contact and customer relationships are key services for all types of firms. To achieve this high quality performance standard, companies need highly motivated and committed employees, and human resources managers are responsible for designing and implementing practices capable of satisfying both economic exchanges and social exchanges in employee-organization relationships. The aim of this study is to analyze the relationships between monetary incentive expectation and affective commitment, in addition to the mediating role of motivation orientation in this relationship, in contact center employees. In particular, based on the social exchange theory (Blau, 1964), the s…