747 research outputs found

    Screening, Competition, and Job Design

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    In recent decades, many firms offered more discretion to their employees, often increasing the productivity of effort but also leaving more opportunities for shirking. These “high-performance work systems” are difficult to understand in terms of standard moral hazard models. We show experimentally that complementarities between high effort discretion, rent-sharing, screening opportunities, and competition are important driving forces behind these new forms of work organization. We document in particular the endogenous emergence of two fundamentally distinct types of employment strategies. Employers either implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust strategy, which stipulates high effort discretion and substantial rent-sharing. If employers cannot screen employees, the control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both employers and employees

    Use and Abuse of Authority

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    Employment contracts give a principal the authority to decide flexibly which task his agent should execute. However, there is a tradeoff, first pointed out by Simon (1951), between flexibility and employer moral hazard. An employment contract allows the principal to adjust the task quickly to the realization of the state of the world, but he may also abuse this flexibility to exploit the agent. We capture this tradeoff in an experimental design and show that principals exhibit a strong preference for the employment contract. However, selfish principals exploit agents in one-shot interactions, inducing them to resist entering into employment contracts. This resistance to employment contracts vanishes if fairness preferences in combination with reputation opportunities keep principals from abusing their power, leading to the widespread, endogenous formation of efficient long-run employment relations. Our results inform the theory of the firm by showing how behavioral forces shape an important transaction cost of integration – the abuse of authority – and by providing an empirical basis for assessing differences between the Marxian and the Coasian view of the firm, as well as Alchian and Demsetz’s (1972) critique of the Coasian approach

    Screening, Competition, and Job Design: Economic Origins of Good Jobs

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    In recent decades, many firms offered more discretion to their employees, often increasing the productivity of effort but also leaving more opportunities for shirking. These "high-performance work systems" are difficult to understand in terms of standard moral hazard models. We show experimentally that complementarities between high effort discretion, rent-sharing, screening opportunities, and competition are important driving forces behind these new forms of work organization. We document in particular the endogenous emergence of two fundamentally distinct types of employment strategies. Employers either implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust strategy, which stipulates high effort discretion and substantial rent-sharing. If employers cannot screen employees, the control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both employers and employees.Job design, high-performance work systems, screening, reputation, competition, trust, control, social preferences, complementarities, SOEP

    Screening, Competition, and Job Design: Economic Origins of Good Jobs

    Get PDF
    In recent decades, many firms offered more discretion to their employees, often increasing the productivity of effort but also leaving more opportunities for shirking. These "high-performance work systems" are difficult to understand in terms of standard moral hazard models. We show experimentally that complementarities between high effort discretion, rent-sharing, screening opportunities, and competition are important driving forces behind these new forms of work organization. We document in particular the endogenous emergence of two fundamentally distinct types of employment strategies. Employers either implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust strategy, which stipulates high effort discretion and substantial rent-sharing. If employers cannot screen employees, the control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both employers and employees.job design, high-performance work systems, screening, reputation, competition, trust, control, social preferences, complementarities

    Einfluss der Fetalblutanalyse auf die Prozess- und ErgebnisqualitÀt in der Perinatalmedizin

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    Fragestellung: Der klinische Nutzen des Einsatzes der Fetalblutanalyse wird national und international kritisch diskutiert. Kann dieses biochemische Verfahren, welches bei pathologischem Kardiotokogramm (CTG) durchgefĂŒhrt wird, die Ă€rztliche Entscheidung optimieren und somit Einfluss auf die Prozess- und ErgebnisqualitĂ€t der geburtshilflichen Behandlung ausĂŒben? Methode: Anhand von Daten der Hessischen Perinatalerhebung eines Kollektivs klinischer Geburten in Hessen der Jahre 1990-2003 wurde dieser Frage nachgegangen. Hierbei wurden nur FĂ€lle eingeschlossen, bei denen ein kontinuierliches oder intermittierendes CTG durchgefĂŒhrt und dieses als pathologisch dokumentiert wurde. Ausgeschlossen waren Geburten mit weiteren Geburtsrisiken. Von insgesamt 785.766 Geburten konnten 20.335 ausgewertet werden. Als Parameter der ProzessqualitĂ€t wurde die Kaiserschnittrate verwendet, APGAR-Wert, Nabelarterien-pH, Verlegung in eine Kinderklinik sowie neonatale MortalitĂ€t wurden als Parameter der ErgebnisqualitĂ€t betrachtet. Verglichen wurden diese Parameter fĂŒr die FĂ€lle mit und ohne durchgefĂŒhrte Fetalblutanalyse sowie fĂŒr deren Untergruppen, die per Sectio caesarea oder vaginal entbunden wurden. Neben der bivariaten Untersuchung wurde auch eine multivariate Analyse unter BerĂŒcksichtigung der Schwangerschaftsrisiken durchgefĂŒhrt. Ergebnis: In 22,5 % der untersuchten Geburten mit pathologischem CTG wurde eine Fetalblutanalyse durchgefĂŒhrt, 18.9% dieser Geburten wurden per Sectio caesarea beendet. Eine konsequente DurchfĂŒhrung der Fetalblutanalyse reduziert die HĂ€ufigkeit der sekundĂ€ren Sectio caesarea bei Vorliegen eines pathologischen CTGĆœs als ausschließliches Geburtsrisiko von 20.6% auf 13.1% (p< .05) und vermindert somit die Anzahl operativer Entbindungen. Die Anzahl der Neugeborenen mit relevanter FrĂŒhmorbiditĂ€t (APGAR 5min < 7) wird ebenfalls reduziert (0.9% auf 0.5%, p< .05). Die Zahl der Kinder mit anhaltendem klinischem Depressionszustand (Nabelarterien pH < 7.0) sowie die Not-wendigkeit der postpartalen Verlegung in eine Kinderklinik wurde reduziert (0,6% auf 0,4% (n.s.), bzw. 7,4% auf 5,9% (p< .05). Dieser Unterschied ist bei den vaginal geborenen Kindern stĂ€rker ausgeprĂ€gt als bei den per Sectio caesarea geborenen. Schwangerschaftsrisiken haben auf das Ergebnis keinen Einfluss. Schlussfolgerung: Die konsequente zusĂ€tzliche DurchfĂŒhrung der Fetalblutanalyse im Falle eines pathologischen Herzfrequenzmusters beim Fetus verbessert die QualitĂ€t der geburtshilflichen Versorgung
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