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- W2165469096 abstract "We study optimal incentive provision for knowledge workers, a crucial resource for many organizations. We augment a standard moral-hazard framework to reflect two key patterns: First, retention is a challenge because workers are free to leave; thereby harming their employer. Second, the value of the workerU+05F3s outside option might depend on effort on the job. Optimal contracts that retain workers exhibit properties such as first-best effort and surplus, or non-responsiveness to changes in underlying conditions. Due to large rents, full retention is, however, costly for employers. Hence, even when socially inefficient, separation might occur in equilibrium. © 2014 Elsevier B.V." @default.
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- W2165469096 date "2014-04-01" @default.
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- W2165469096 title "Optimal incentive contracts for knowledge workers" @default.
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- W2165469096 doi "https://doi.org/10.1016/j.euroecorev.2014.01.006" @default.
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