Workers' Responses to Incentives: The Case of Pending MLB Free Agents
AbstractThis study examines ways in which workers respond to implicit incentives. Specifically, we examine the extent to which workers shift their effort to activities that are measured and which have been previously rewarded in the labor market. To examine this question, we examine the changes in the performance measures of professional baseball players in the season prior to the opportunity to freely negotiate their contract (free agency). We will examine different eras in baseball to examine if we can identify changes in behavior in this pivotal year based on changes to the current premium outputs for each time period.
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Bibliographic InfoPaper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 1304.
Length: 35 pages
Date of creation: Jul 2013
Date of revision:
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Web page: http://www.holycross.edu/departments/economics/website/
More information through EDIRC
Agency theory; strategic performance; opportunistic behavior; baseball;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-CTA-2013-07-15 (Contract Theory & Applications)
- NEP-HRM-2013-07-15 (Human Capital & Human Resource Management)
- NEP-LAB-2013-07-15 (Labour Economics)
- NEP-LMA-2013-07-15 (Labor Markets - Supply, Demand, & Wages)
- NEP-SPO-2013-07-15 (Sports & Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruce Shearer, 2004. "Piece Rates, Fixed Wages and Incentives: Evidence from a Field Experiment," Review of Economic Studies, Wiley Blackwell, vol. 71(2), pages 513-534, 04.
- Paarsch, Harry J. & Shearer, Bruce, 1996.
"Piece Rates, Fixed Wages, and Incentive Effects: Statistical Evidence from Payroll Records,"
Cahiers de recherche
9623, Université Laval - Département d'économique.
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- Paarsch, H-J & Shearer, B, 1996. "Piece Rates, Fixed Wages, and Incentive Effects : Statistical Evidence From Payroll Records," Papers 9623, Laval - Recherche en Energie.
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- Lazear, Edward P, 1986. "Salaries and Piece Rates," The Journal of Business, University of Chicago Press, vol. 59(3), pages 405-31, July.
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"Performance Pay and Top-Management Incentives,"
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University of Chicago Press, vol. 98(2), pages 225-64, April.
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