Effort or Timing: The Effect of Lump-Sum Bonuses
نویسندگان
چکیده
منابع مشابه
Factors Related to Lump Sum Bonuses: The Case of a Canadian Financial Institution
The use of lump sum bonuses as a variable pay system is increasingly popular with businesses. Used as a means to reward strong individual performances of employees, lump sum bonuses are granted according to the manager’s appraisal of the employee’s performance. The aim of this research is to ascertain whether there are factors other than individual performance that exert an influence on the gra...
متن کاملLump Sum Bonuses in Union Contracts: Semantic Change or Step toward a New Wage Determination System?
* We are grateful to the many members of the MIT and Harvard economics communities who have generously provided us with insightful conversations, comments on an earlier draft of this paper and practical support. We are particularly indebted to
متن کاملThe Interaction between Lump - sum Aid and the Substitution Effect of Matching Aid
(Abstract) According to one theory, consumer-voters mistake the lump-sum aid for matching aid such that the former reduces their tax price of the aided service, generating the substitution effect. This flypaper effect is more likely when both lump-sum aid and matching aid (or equivalent tax-price reducing mechanisms) coexist and there is a high likelihood of interaction between the lump-sum aid...
متن کاملEarnings-related Severance Pay
Lump-sum severance pay from which shirkers can be excluded raises employment in an efficiency wage economy. However, severance payments are usually related to wages. It is shown that earnings-related, mandated severance pay will have ambiguous employment effects if effort can be varied continuously. A substitution of the earnings-related for the lump-sum component reduces employment. Thus, the ...
متن کاملSubstitution and Income Effects at the Aggregate Level: the Effective Budget Constraint of the Government and the Flypaper Effect
This paper analyzes the effect of a change in lump-sum (private) income on the tax and expenditure decisions of a government constrained by taxpayers’ behavioral responses to the tax policy. Lump-sum changes of private income are generally characterized as pure income effects on taxpayers’ behavior, and usually considered in public finance theory as imposing no price effects on the economy. In ...
متن کامل