Agency‐Theory and Internal‐Labor‐Market Explanations of Bonus Payments: Empirical Evidence from Spanish Firms
Author
Abstract
Suggested Citation
DOI: 10.1111/j.1430-9134.1998.00573.x
Download full text from publisher
References listed on IDEAS
- Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75, pages 123-123.
- Lazear, Edward P & Rosen, Sherwin, 1981.
"Rank-Order Tournaments as Optimum Labor Contracts,"
Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
- Edward P. Lazear & Sherwin Rosen, 1979. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc.
- George P. Baker, 1990. "Pay‐For‐Performance For Middle Managers: Causes And Consequences," Journal of Applied Corporate Finance, Morgan Stanley, vol. 3(3), pages 50-61, September.
- Yingyi Qian, 1994. "Incentives and Loss of Control in an Optimal Hierarchy," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 527-544.
- George Baker & Michael Gibbs & Bengt Holmstrom, 1994. "The Internal Economics of the Firm: Evidence from Personnel Data," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 881-919.
- Laffont, Jean-Jacques & Tirole, Jean, 1986.
"Using Cost Observation to Regulate Firms,"
Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-641, June.
- Jean Tirole & Jean-Jaques Laffont, 1985. "Using Cost Observation to Regulate Firms," Working papers 368, Massachusetts Institute of Technology (MIT), Department of Economics.
- Gibbons, Robert & Murphy, Kevin J, 1992.
"Optimal Incentive Contracts in the Presence of Career Concerns: Theory and Evidence,"
Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 468-505, June.
- Gibbons, R. & Murphy, K.J., 1990. "Optimal Incentive Contracts In The Presence Of Career Concerns: Theory And Evidence," Working papers 563, Massachusetts Institute of Technology (MIT), Department of Economics.
- Murphy, K.J. & Gibbons, R., 1990. "Optimal Incentive Contracts in the Presence of Career Concerns : Theory and Evidence," Papers 90-09, Rochester, Business - Managerial Economics Research Center.
- Robert Gibbons & Kevin J. Murphy, 1991. "Optimal Incentive Contracts in the Presence of Career Concerns: Theory and Evidence," NBER Working Papers 3792, National Bureau of Economic Research, Inc.
- Holmstrom, Bengt & Milgrom, Paul, 1987.
"Aggregation and Linearity in the Provision of Intertemporal Incentives,"
Econometrica, Econometric Society, vol. 55(2), pages 303-328, March.
- Bengt Holmstrom & Paul R. Milgrom, 1985. "Aggregation and Linearity in the Provision of Intertemporal Incentives," Cowles Foundation Discussion Papers 742, Cowles Foundation for Research in Economics, Yale University.
- Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
- Oliver E. Williamson & Michael L. Wachter & Jeffrey E. Harris, 1975. "Understanding the Employment Relation: The Analysis of Idiosyncratic Exchange," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 250-278, Spring.
- Bengt Holmstrom, 1979.
"Moral Hazard and Observability,"
Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
- Bengt Holmstrom, 1997. "Moral Hazard and Observability," Levine's Working Paper Archive 1205, David K. Levine.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
- Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
- Michael Waldman, 1984.
"Job Assignments, Signalling, and Efficiency,"
RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 255-267, Summer.
- Michael Waldman, 1983. "Job Assignments, Signalling nad Efficiency," UCLA Economics Working Papers 286, UCLA Department of Economics.
- Gibbs, Michael, 1995. "Incentive compensation in a corporate hierarchy," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 247-277, April.
- Amiya K. Basu & Rajiv Lal & V. Srinivasan & Richard Staelin, 1985. "Salesforce Compensation Plans: An Agency Theoretic Perspective," Marketing Science, INFORMS, vol. 4(4), pages 267-291.
- HOLMSTROM, Bengt, 1979. "Moral hazard and observability," LIDAM Reprints CORE 379, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Joesph E. Stiglitz, 1975. "Incentives, Risk, and Information: Notes Towards a Theory of Hierarchy," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 552-579, Autumn.
- Garen, John E, 1994. "Executive Compensation and Principal-Agent Theory," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1175-1199, December.
- Harris, Milton & Raviv, Artur, 1979. "Optimal incentive contracts with imperfect information," Journal of Economic Theory, Elsevier, vol. 20(2), pages 231-259, April.
- Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
- Fumas, Vincente Salas, 1993. "Incentives and supervision in hierarchies," Journal of Economic Behavior & Organization, Elsevier, vol. 21(3), pages 315-331, August.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Christian Grund & Matthias Kräkel, 2012.
"Bonus Payments, Hierarchy Levels, and Tenure: Theoretical Considerations and Empirical Evidence,"
Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 64(2), pages 101-124, April.
- Grund, Christian & Kräkel, Matthias, 2010. "Bonus Payments, Hierarchy Levels and Tenure: Theoretical Considerations and Empirical Evidence," IZA Discussion Papers 5284, Institute of Labor Economics (IZA).
- Alberto Bayo-Moriones & Jose E. Galdon-Sanchez & Sara Martinez-de-Morentin, 2017.
"Performance Measurement and Incentive Intensity,"
Journal of Labor Research, Springer, vol. 38(4), pages 496-546, December.
- Bayo-Moriones, Alberto & Galdon-Sanchez, Jose Enrique & Martinez-de-Morentin, Sara, 2015. "Performance Measurement and Incentive Intensity," IZA Discussion Papers 9243, Institute of Labor Economics (IZA).
- Arnaldo Camuffo, 2002. "The Changing Nature of Internal Labor Markets," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(4), pages 281-294, December.
- Barth, Erling & Bratsberg, Bernt & Haegeland, Torbjørn & Raaum, Oddbjørn, 2006. "Who Pays for Performance?," IZA Discussion Papers 2142, Institute of Labor Economics (IZA).
- Alberto Bayo-Moriones & Jose Enrique Galdon-Sanchez & Sara Martinez-De-Morentin, 2013.
"The Diffusion of Pay for Performance across Occupations,"
ILR Review, Cornell University, ILR School, vol. 66(5), pages 1115-1148, October.
- Bayo-Moriones, Alberto & Galdon-Sanchez, Jose Enrique & Martinez-de-Morentin, Sara, 2010. "The Diffusion of Pay for Performance across Occupations," IZA Discussion Papers 4839, Institute of Labor Economics (IZA).
- Alberto Bayo-Moriones & Jose Enrique Galdon-Sanchez & Sara Martinez-de-Morentin, 2012. "The Diffusion of Pay for Performance Across Occupations," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 1210, Departamento de Economía - Universidad Pública de Navarra.
- Ricart, Joan E. & Corrales, Jose M., 2000. "Managerial appraisal and compensation: The case of Spain," IESE Research Papers D/413, IESE Business School.
- Grund, Christian & Walter, Tanja, 2013. "Management Compensation and the Economic Crisis: Longitudinal Evidence from the German Chemical Sector," IZA Discussion Papers 7435, Institute of Labor Economics (IZA).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- repec:eee:labchp:v:3:y:1999:i:pb:p:2373-2437 is not listed on IDEAS
- José Ángel Zúñiga Vicente & José David Vicente Lorente, 2003. "Assessing the Structural Change of Strategic Mobility Determinants Under Hypercompetitive Environments," Working Papers 0302, Departament Empresa, Universitat Autònoma de Barcelona, revised Feb 2003.
- Alberto Bayo-Moriones & Pedro Ortín-Ángel, 2003. "Internal Promotion Versus External Recruitment: Evidence in Industrial Plants," Working Papers 0303, Departament Empresa, Universitat Autònoma de Barcelona, revised Mar 2003.
- Patrick Kampkoetter, 2012. "Determinants of Compensation in the Financial Services Industry," Cologne Graduate School Working Paper Series 03-12, Cologne Graduate School in Management, Economics and Social Sciences.
- Michael Waldman, 2012.
"Theory and Evidence in Internal Labor Markets,"
Introductory Chapters, in: Robert Gibbons & John Roberts (ed.),The Handbook of Organizational Economics,
Princeton University Press.
- Waldman, Michael, 2007. "Theory and evidence in internal labor markets," MPRA Paper 5113, University Library of Munich, Germany.
- Oyer, Paul & Schaefer, Scott, 2011.
"Personnel Economics: Hiring and Incentives,"
Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823,
Elsevier.
- Paul Oyer & Scott Schaefer, 2010. "Personnel Economics: Hiring and Incentives," NBER Working Papers 15977, National Bureau of Economic Research, Inc.
- Ambra, Poggi & Piergiovanna, Natale, 2017. "Learning by hiring, network centrality and within-firm wage dispersion," Working Papers 369, University of Milano-Bicocca, Department of Economics, revised 19 Aug 2017.
- Robert Gibbons & Michael Waldman, 2006.
"Enriching a Theory of Wage and Promotion Dynamics inside Firms,"
Journal of Labor Economics, University of Chicago Press, vol. 24(1), pages 59-108, January.
- Gibbons, Robert & Waldman, Michael, 2003. "Enriching a Theory of Wage and Promotion Dynamics Inside Firms," Working papers 4324-03, Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Robert Gibbons & Michael Waldman, 2003. "Enriching a Theory of Wage and Promotion Dynamics Inside Firms," NBER Working Papers 9849, National Bureau of Economic Research, Inc.
- Eduard Marinov, 2016. "The 2016 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 97-149.
- Holmstrom, Bengt R. & Tirole, Jean, 1989. "The theory of the firm," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 2, pages 61-133, Elsevier.
- repec:eee:labchp:v:3:y:1999:i:pb:p:2485-2563 is not listed on IDEAS
- Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
- William Bentley MacLeod & Daniel Parent, 1998. "Job Characteristics and the Form of Compensation," CIRANO Working Papers 98s-08, CIRANO.
- Yoon K. Choi, 2020. "Does executive compensation reflect corporate productivity?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(7-8), pages 1012-1033, July.
- Baptista, Rui & Lima, Francisco & Preto, Miguel Torres, 2012. "How former business owners fare in the labor market? Job assignment and earnings," European Economic Review, Elsevier, vol. 56(2), pages 263-276.
- Dohmen, Thomas J., 2004.
"Performance, seniority, and wages: formal salary systems and individual earnings profiles,"
Labour Economics, Elsevier, vol. 11(6), pages 741-763, December.
- Dohmen, Thomas, 2003. "Performance, Seniority and Wages: Formal Salary Systems and Individual Earnings Profiles," IZA Discussion Papers 935, Institute of Labor Economics (IZA).
- Robert Gibbons, 2005. "Incentives Between Firms (and Within)," Management Science, INFORMS, vol. 51(1), pages 2-17, January.
- repec:hrv:faseco:34651704 is not listed on IDEAS
- David E. M. Sappington, 1991. "Incentives in Principal-Agent Relationships," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 45-66, Spring.
- Christian Bayer & Moritz Kuhn, 2018.
"Which Ladder to Climb? Decomposing Life Cycle Wage Dynamics,"
CESifo Working Paper Series
7236, CESifo.
- Bayer, Christian & Kuhn, Moritz, 2019. "Which Ladder to Climb? Decomposing Life Cycle Wage Dynamics," IZA Discussion Papers 12473, Institute of Labor Economics (IZA).
- Ilya Prakhov & Victor Rudakov, 2018. "The Determinants of Faculty Pay in Russian Universities: Incentive Contracts," HSE Working papers WP BRP 47/EDU/2018, National Research University Higher School of Economics.
- Silva, Pedro Luís, 2022. "Specialists or All-Rounders: How Best to Select University Students?," IZA Discussion Papers 15271, Institute of Labor Economics (IZA).
- Polachek, Solomon W., 2008.
"Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications,"
Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
- Polachek, Solomon, 2007. "Earnings Over the Lifecycle: The Mincer Earnings Function and Its Applications," IZA Discussion Papers 3181, Institute of Labor Economics (IZA).
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jemstr:v:7:y:1998:i:4:p:573-613. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.