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Employer's Information and Promotion-Seeking Activities

  • Epstein, Gil S.

    ()

    (Bar-Ilan University)

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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File URL: http://ftp.iza.org/dp7023.pdf
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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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  1. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-15, September.
  2. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  3. Gil S Epstein & Yosef Mealem, 2012. "Cooperation and Effort in Group Contests," Economics Bulletin, AccessEcon, vol. 32(1), pages 624-638.
  4. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer, vol. 7(2), pages 283-290.
  5. 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 841-64, October.
  6. 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.
  7. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
  8. 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.
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