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Employer's Information and Promotion-Seeking Activities

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  • Epstein, Gil S.

    ()
    (Bar-Ilan University)

Abstract

This paper presents a model in which promotion of employees within the internal firm hierarchy is determined by the individuals' allocation of time between promotion/rent-seeking and productive activity. We consider the effect of an increase in the employer's knowledge (information) regarding the employees' productivity levels on the total time spent by the workers in non-productive promotion-seeking activities.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7023.

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Length: 19 pages
Date of creation: Nov 2012
Date of revision:
Publication status: published in: Economics and Business Letters, 2012, 1(4), 21-32
Handle: RePEc:iza:izadps:dp7023

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Keywords: promotion-seeking activities; contest; knowledge;

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References

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  1. Gil S. Epstein & Yosef Mealem, 2011. "Cooperation and Effort in Group Contests," Working Papers 2011-28, Department of Economics, Bar-Ilan University.
  2. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
  3. Hillman, Arye L. & Katz, Eliakim, 1987. "Hierarchical structure and the social costs of bribes and transfers," Journal of Public Economics, Elsevier, vol. 34(2), pages 129-142, November.
  4. Edward P. Lazear & Sherwin Rosen, 1979. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc.
  5. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  6. Sherwin Rosen, 1985. "Prizes and Incentives in Elimination Tournaments," NBER Working Papers 1668, National Bureau of Economic Research, Inc.
  7. Gil Epstein & Uriel Spiegel, 1997. "Monitoring within the Firm and Manager Relations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 4(1), pages 51-61.
  8. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
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