Rank-Order Tournaments as Optimum Labor Contracts
This paper analyzes compensation schemes which pay according to an individual's ordinal rank in an organization rather than his output level. When workers are risk neutral, it is shown that wages…
Pay Equality and Industrial Politics
- E. Lazear
- EconomicsJournal of Political Economy
- 1 June 1989
Personnel managers often argue that equitable pay treatment manifested as wage compression is useful because it reduces disharmony among workers. But it is far from obvious that a compressed salary…
Job Security Provisions and Employment
- E. Lazear
- Economics, Business
- 1 August 1990
European countries have enacted various job security provisions over the last 30 years. Employers are required to pay workers on separation or to give advance notice of termination. In anything less…
Peer Pressure and Partnerships
- Eugene Kandel, E. Lazear
- BusinessJournal of Political Economy
- 1 August 1992
Partnerships and profit sharing are often claimed to motivate workers by giving them a share of the pie. But in organizations of any significant size, the free-rider effects would seem to choke off…
Why Is There Mandatory Retirement?
- E. Lazear
- EconomicsJournal of Political Economy
- 1 December 1979
This paper offers an explanation of the use of mandatory-retirement clauses in labor contracts. It argues that the date of mandatory retirement is chosen to correspond to the date of voluntary…
Balanced Skills and Entrepreneurship
- E. Lazear
- Economics
- 1 April 2004
Entrepreneurs are generalists who put together teams of people and assemble resources and capital. To do this effectively, they must have a general set of skills. Individuals may be endowed with a…
Salaries and Piece Rates
- E. Lazear
- Economics
- 1986
Compensation can take many forms. Remuneration can come as pecuniary payments, as fringes such as health and pension benefits, or as a nonpecuniary reward such as plush office furniture that costs…
Educational Production
- E. Lazear
- Education
- 1 September 1999
The literature on class size yields a number of findings. First, class size effects are difficult to find except when using data where class size variations are truly exogenous. Second, Catholic…
Globalisation and the Market for Team‐Mates
- E. Lazear
- Economics
- 1 March 1999
The globalization of firms is explored at theoretical and empirical levels. The idea is that a global firm is a multicultural team. The existence of a global firm is somewhat puzzling. Combining…
Culture and Language
- E. Lazear
- EconomicsJournal of Political Economy
- 1 September 1995
Common culture and common language facilitate trade between individuals. Individuals have incentives to learn the other languages and cultures so that they have a larger pool of potential trading…
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