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We present a model in which workers with greater ability and greater risk tolerance move into performance pay jobs to capture rents and contrast it with the classic agency model. Estimates from the German Socio-Economic Panel confirm testable implications drawn from our model. First, before controlling for earnings, workers in performance pay jobs have higher job satisfaction, a proxy for on-the-job ...
In:
Labour Economics
18 (2011), 2, 229-239
| Thomas Cornelißen, John S. Heywood, Uwe Jirjahn
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Free-riding potentially limits the effectiveness of profit sharing in motivating workers. While reciprocity can mitigate this problem, it need not be uniformly productive. We show that the probability of receiving profit sharing takes an inverse U-shape as detailed individual survey measures of reciprocity increase. This is consistent with moderate but not extreme reciprocity stimulating productivity. ...
In:
Journal of Labor Research
35 (2014), 2, 205-225
| Thomas Cornelissen, John S. Heywood, Uwe Jirjahn
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CEO compensation that is perceived to be excessive regularly causes agitation in the population. Using German data, we show that perceiving CEO pay to be unfair has economic repercussions in terms of lower work morale.
In:
Economics Letters
110 (2011), 1, 45-48
| Thomas Cornelißen, Oliver Himmler, Tobias Koenig
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It is standardly assumed that individuals react to perceived unfairness or norm violations in precisely the same area or relationship where the original offense has occurred. However, grievances over being exposed to injustice may have even broader consequences and also spill over to other contexts, causing non-compliant behavior there. We present evidence that such “fairness spillovers” can incur ...
In:
Journal of Economic Behavior & Organization
90 (2013), June 2013, 164-180
| Thomas Cornelißen, Oliver Himmler, Tobias Koenig
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Using data from the German Socio-Economic Panel (GSOEP) we study whether being individually affected by downward wage rigidity has an effect on layoffs, quits and intra-firm mobility. Within a structural empirical model we estimate the individual extent of wage rigidity. This is expressed by the wage sweep-up, which measures by how much individual wage growth increases through the effect of downward ...
In:
Empirical Economics
34 (2008), 2, 205-230
| Thomas Cornelißen, Olaf Hübler
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While available evidence suggests that the events of September 11th negatively influenced the relative earnings of employees with Arab background in the US, it is not clear that they had similar effects in other countries. Our study for Germany provides evidence that the events also affected the relative earnings of Muslims outside the US. However, the results show that there was no uniform effect ...
In:
Journal of Economic Behavior & Organization
81 (2012), 2, 490-504
| Thomas Cornelißen, Uwe Jirjahn
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Using German employee data, we find that being raised by two religious parents and having no current religious affiliation is associated with higher earnings. This conforms to the hypothesis that people who are raised religiously and reject religion as adults are economically more successful as they combine a strong internalized work ethic with an increased interest in present consumption (as opposed ...
In:
Economics Letters
117 (2012), 3, 905-908
| Thomas Cornelissen, Uwe Jirjahn
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Using data from the German Socioeconomic Panel (GSOEP), the study analyzes the direct and indirect effects of parental background on employees’ earnings. To examine indirect effects we estimate the determinants of the employees’ years of schooling. In a second step, we run wage regressions to examine direct effects. Our results suggest that the direct and indirect effects of parental background driving ...
In:
Jahrbücher für Nationalökonomie und Statistik
228 (2008), 5+6, 554-573
| Thomas Cornelissen, Uwe Jirjahn, Georgi Tsertsvadse
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Since 2002 the German government has promoted private retirement saving plans by means of special subsidies and tax incentives (Riester scheme). This policy mainly targets low-income households. Using data from the German Socio-economic Panel, we scrutinize the impact of the Riester scheme on private savings. Our empirical strategy consists of treating the introduction of the Riester scheme as a natural ...
Kiel:
Christian-Albrechts-Universität zu Kiel, Department of Economics,
2008,
(Economics Working Paper No 2008-18)
| Giacomo Corneo, Matthias Keese, Carsten Schröder
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Since 2002 the German government has promoted private retirement saving plans by means of special subsidies and tax incentives: the Riester scheme. This policy mainly targets low-income households. Using data from the German Socio-economic Panel, we scrutinize the impact of the Riester scheme on private savings. The introduction of the Riester scheme is treated as a natural experiment. Estimation results ...
In:
Schmollers Jahrbuch - SOEP after 25 Years. Proceedings of the 8th International Socio-Economic Panel User Conference
129 (2009), 2, 321-332
| Giacomo Corneo, Matthias Keese, Carsten Schröder