|
|
|
|
||||
|
||||
Bonus Payments, Hierarchy Levels, and Tenure: Theoretical Considerations and Empirical EvidenceChristian GrundRWTH Aachen University - School of Economics and Business Administration; Institute for the Study of Labor (IZA) Matthias KräkelUniversity of Bonn - Economic Science Area; Institute for the Study of Labor (IZA) Schmalenbach Business Reviewaffiliation not provided to SSRN April 1, 2012 Schmalenbach Business Review, Vol. 64, April 2012, pp. 101-124 Abstract: We investigate two theoretical approaches that focus on bonuses as part of a firm’s long-term wage policy. The first approach argues that explicit bonuses serve as substitutes for implicit career concerns. The second claims that bonuses act as complements to an executive’s internal career. Our data show that throughout the whole chemical industry sector, bonus payments are mostly prevalent among the most senior executives and for management jobs rather than for jobs in research and development. The findings indicate that the two theoretical views are not mutually exclusive, but are both relevant in practice.
Number of Pages in PDF File: 24 Keywords: Bonuses, Career Concerns, Hierarchy Levels, Internal Careers, Tenure JEL Classification: J31, J33, M51, M52 Accepted Paper SeriesDate posted: April 14, 2012Suggested CitationContact Information
|
|
||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo5 in 0.766 seconds
