Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35178 
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dc.contributor.authorKräkel, Matthiasen
dc.contributor.authorSchöttner, Anjaen
dc.date.accessioned2008-09-30-
dc.date.accessioned2010-07-07T11:34:30Z-
dc.date.available2010-07-07T11:34:30Z-
dc.date.issued2008-
dc.identifier.piurn:nbn:de:101:1-20081014459en
dc.identifier.urihttp://hdl.handle.net/10419/35178-
dc.description.abstractSeveral empirical studies have challenged tournament theory by pointing out that (1) there is considerable pay variation within hierarchy levels, (2) promotion premiums only in part explain hierarchical wage differences and (3) external recruitment is observable on nearly any hierarchy level. We explain these empirical puzzles by combining job-promotion tournaments with higher-level bonus payments in a two-tier hierarchy. Moreover, we show that under certain conditions the firm implements first-best effort on tier 2 although workers earn strictly positive rents. The reason is that the firm can use second-tier rents for creating incentives on tier 1. If workers are heterogeneous, the firm strictly improves the selection quality of a job-promotion tournament by employing a hybrid incentive scheme that includes bonus payments.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x3702en
dc.subject.jelD82en
dc.subject.ddc330en
dc.subject.keywordBonusesen
dc.subject.keywordexternal recruitmenten
dc.subject.keywordjob promotionen
dc.subject.keywordlimited liabilityen
dc.subject.keywordtournamentsen
dc.subject.stwErwerbsverlaufen
dc.subject.stwExtensives Spielen
dc.subject.stwLeistungsorientierte Vergütungen
dc.subject.stwPersonalbeschaffungen
dc.subject.stwHierarchieen
dc.subject.stwAnreizvertragen
dc.subject.stwTheorieen
dc.titleRelative performance pay, bonuses, and job-promotion tournaments-
dc.type|aWorking Paperen
dc.identifier.ppn578673509en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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