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Personnel economics : hiring and incentives

Author: Paul E Oyer; Scott Schaefer; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2010.
Series: Working paper series (National Bureau of Economic Research), no. 15977.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
We survey the Personnel Economics literature, focusing on how firms establish, maintain, and end employment relationships and on how firms provide incentives to employees. This literature has been very successful in generating models and empirical work about incentive systems. Some of the unanswered questions in this area -- for example, the empirical relevance of the risk/incentive tradeoff and the question of  Read more...
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Additional Physical Format: Print version:
Oyer, Paul E. (Paul Edward), 1963-
Personnel economics.
Cambridge, Mass. : National Bureau of Economic Research, ©2010
(DLC) 2010656017
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Paul E Oyer; Scott Schaefer; National Bureau of Economic Research.
OCLC Number: 613614326
Description: 1 online resource (72 pages).
Series Title: Working paper series (National Bureau of Economic Research), no. 15977.
Responsibility: Paul Oyer, Scott Schaefer.

Abstract:

We survey the Personnel Economics literature, focusing on how firms establish, maintain, and end employment relationships and on how firms provide incentives to employees. This literature has been very successful in generating models and empirical work about incentive systems. Some of the unanswered questions in this area -- for example, the empirical relevance of the risk/incentive tradeoff and the question of whether CEO pay arrangements reflect competitive markets and efficient contracting -- are likely to be very difficult to answer due to measurement problems. The literature has been less successful at explaining how firms can find the right employees in the first place. Economists understand the broad economic forces -- matching with costly search and bilateral asymmetric information -- that firms face in trying to hire. But the main models in this area treat firms as simple black-box production functions. Less work has been done to understand how different firms approach the hiring problem, what determines the firm-level heterogeneity in hiring strategies, and whether these patterns conform to theory. We survey some literature in this area and suggest areas for further research.

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