People are usually more productive when they are paid according to their performance. Yet, it is reported that women prefer fixed rate payment over performance based payment schemes. This study experimentally investigates i) whether absolute...

The paper suggests that international differences in educational institutions explain the large international differences in student performance in cognitive achievement tests. A microeconometric student-level estimation based on data for more than...

This paper presents a theory of the labor market matching process in terms of incentive-based, two-sided search among heterogeneous agents. The matching process is decomposed into its two component stages: the contact stage, in which job searchers...

This paper presents a theory of the labor market matching process in terms of incentive-based, two-sided search among heterogeneous agents. The matching process is decomposed into its two component stages: the contact stage, in which job searchers...

Economic experiments report that individuals perform better under a piece rate payment scheme in comparison to a fixed payment scheme. The reason is straightforward: incentives motivate people, and without incentives they decrease their effort. Yet...