Incentives and Earnings Growth

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avisTidsskriftartikelForskningpeer review

The career prospects of newly recruited employees differ substantially within an organization. The stars experience considerable growth in earnings; others can hardly maintain their entry salaries. This article sheds light on the mechanisms generating the observed heterogeneity in earnings growth by investigating the effects that explicit short-run incentives and implicit incentives have on earnings growth. The model’s predictions are tested using personnel records from a large bank and are found to be consistent with the observed earnings growth during the first half of the employees’ careers.
OriginalsprogEngelsk
TidsskriftJournal of Economic Behavior & Organization
Vol/bind85
Nummer1
Sider (fra-til)97-107
ISSN0167-2681
DOI
StatusUdgivet - 2013

Se relationer på Aarhus Universitet Citationsformater

ID: 51328405