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dc.contributor.authorKräkel, Matthiasen_US
dc.contributor.authorSchöttner, Anjaen_US
dc.date.accessioned2008-09-30en_US
dc.date.accessioned2010-07-07T11:34:30Z-
dc.date.available2010-07-07T11:34:30Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-20081014459en_US
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_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA discussion papers 3702en_US
dc.subject.jelD82en_US
dc.subject.ddc330en_US
dc.subject.keywordBonusesen_US
dc.subject.keywordexternal recruitmenten_US
dc.subject.keywordjob promotionen_US
dc.subject.keywordlimited liabilityen_US
dc.subject.keywordtournamentsen_US
dc.subject.stwErwerbsverlaufen_US
dc.subject.stwExtensives Spielen_US
dc.subject.stwLeistungsorientierte Vergütungen_US
dc.subject.stwPersonalbeschaffungen_US
dc.subject.stwHierarchieen_US
dc.subject.stwAnreizvertragen_US
dc.subject.stwTheorieen_US
dc.titleRelative performance pay, bonuses, and job-promotion tournamentsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn578673509en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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