Journal ArticleDOI
On the choice of incentives in firms
Felix R. FitzRoy,Kornelius Kraft +1 more
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In this article, simple models of individual and group incentives under uncertainty are compared, and comparative performance is shown to depend upon various exogenous parameters, such as organizational and other characteristics that may be difficult to observe, and attempts to quantify productivity effects that neglect selection bias are likely to be misspecified.Abstract:
Simple models of individual and group incentives under uncertainty are compared, and comparative performance is shown to depend upon various exogenous parameters. The incentive effects of profit sharing will thus vary with organizational and other characteristics that may be difficult to observe, and attempts to quantify productivity effects that neglect selection bias are likely to be misspecified. Significant selection effects are found in previously used firm-level data, and productivity effects of existing profit sharing are found to be much larger than potential effects in firms without sharing arrangements. This throws doubt on policies to encourage sharing in isolation.read more
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Works Councils in Germany: Their Effects on Establishment Performance
TL;DR: In this article, the authors used a large-scale dataset to examine the economic effects of works councils and found that works councils are associated with reduced labour fluctuation, higher productivity, and no reduction in innovative activity.
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Capital, labor, and the firm: a study of german codetermination
Gary Gorton,Frank A. Schmid +1 more
TL;DR: The authors empirically investigated the implications of this sort of labor participation in corporate decision making, and found that companies with equal representation of employees and shareholders on the supervisory board trade at a 31% stock market discount as compared with companies where employee representatives fill only one-third of the board seats.
Journal ArticleDOI
Why Do Firms Adopt Profit‐Sharing and Employee Ownership Plans?
TL;DR: In this paper, a survey of 500 US public companies and panel data on corporate financial variables was used to examine factors predicting the presence and adoption of profit sharing and employee stock ownership plans (ESOPs) in the 1975-91 period.
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Incentives, Targeting, and Firm Performance: An Analysis of Non-executive Stock Options
TL;DR: In this paper, the authors explore the link between broad-based option programs, option portfolio implied incentives, and firm operating performance, utilizing an instrumental variables approach to identify causal effects.
Posted Content
The Course of Research into the Economic Consequences of German Works Councils
TL;DR: In this article, the evolving economic literature is shown to follow three distinct phases, the last of which contains some of the most positive evaluations to date of works council impact on establishment performance.
References
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Book
Limited-Dependent and Qualitative Variables in Econometrics
TL;DR: In this article, the authors present a survey of the use of truncated distributions in the context of unions and wages, and some results on truncated distribution Bibliography Index and references therein.
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Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables
TL;DR: This paper used a variant of a traditional simultaneous equations model with a binary qualitative variable (union membership) and limited dependent variables, and found that the propensity to join a union depends on the net wage gains that might result from trade union membership.
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Information, Incentives and Bargaining in the Japanese Economy
TL;DR: The authors provides rich and systematic descriptions of Japanese microeconomic institutions and interprets their work in terms familiar to Western economists, and a systematic, in-depth analysis of Japanese institutions of this kind has never been available before.
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Inter-industry studies of structure and performance
TL;DR: The authors discusses inter-industry studies of the relations among various measures of market structure, conduct, and performance, and discusses that tradition has indeed uncovered many stable, robust, and empirical regularities.