Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/94150 
Year of Publication: 
2012
Series/Report no.: 
SFB/TR 15 Discussion Paper No. 383
Publisher: 
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY), München
Abstract: 
In Bartling, Fehr and Schmidt (2012) we show theoretically and experimentally that it is optimal to grant discretion to workers if (i) discretion increases productivity, (ii) workers can be screened by past performance, (iii) some workers reciprocate high wages with high effort and (iv) employers pay high wages leaving rents to their workers. In this paper we show experimentally that the productivity increase due to discretion is not only sufficient but also necessary for the optimality of granting discretion to workers. Furthermore, we report representative survey evidence on the impact of discretion on workers' welfare, confirming that workers earn rents.
Subjects: 
high-performance work systems
wages
discretion
gift exchange
job satisfaction
JEL: 
M5
J3
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.