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Employer's Information and Promotion-Seeking Activities

Author

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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.

Suggested Citation

  • Epstein, Gil S., 2012. "Employer's Information and Promotion-Seeking Activities," IZA Discussion Papers 7023, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7023
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    File URL: http://ftp.iza.org/dp7023.pdf
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    References listed on IDEAS

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    1. 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.
    2. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, March.
    3. 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.
    4. Gil S Epstein & Yosef Mealem, 2012. "Cooperation and Effort in Group Contests," Economics Bulletin, AccessEcon, vol. 32(1), pages 624-638.
    5. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-715, September.
    6. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
    7. 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.
    8. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
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    Cited by:

    1. Gil S. Epstein & Renana Lindnerā€Pomerantz, 2017. "The Survival of Unique Corporate Cultures," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(4), pages 622-629, June.

    More about this item

    Keywords

    promotion-seeking activities; contest; knowledge;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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