Universität Wien

040174 KU Personnel Economics II (MA) (2024S)

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work

service email address: opim.bda@univie.ac.at
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

Midterm: Di. 04.06.2024
Endterm: Do. 27.06.2024

  • Thursday 02.05. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 07.05. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 14.05. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Thursday 16.05. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 21.05. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Thursday 23.05. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 28.05. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 04.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Thursday 06.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 11.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Thursday 13.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 18.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Thursday 20.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Tuesday 25.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
  • Thursday 27.06. 16:45 - 18:15 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock

Information

Aims, contents and method of the course

Going beyond the fundamentals of incentive setting, this course discusses the wage setting problem, the interplay between effort incentives and ability selection, the (possible) benefits of direct vs. relative incentive setting, and the enhanced incentive structure of labor contracts. Rigorous theoretic modeling is always combined with empirical testing of the respective arguments.
1. Imperfect labor markets and labor market institutions

(a) Is there equal treatment? The stylized facts of the Austrian labor market
(b) Wage compression
(c) Shortening the hours of work

Literature: Garibaldi, Pietro: Personnel Economics in Imperfect Labor Markets, New York, N.Y.:Oxford University Press, 2006, Chapters 1, 2, 3.

2. Salary vs. incentive pay

(a) The two basic functions of incentive pay: effort incentives and ability selection
(b) Effort incentives: a simple model
(c) Ability selection: a simple model
(d) Piece-rates vs. bonus
(e) Paying for input supply or output success

Literature: Lazear, Edward P.: Personnel Economics for Managers, New York, etc.:
John Wiley, 1998, Chapters 3 - 5, p. 45 - 131.; Garibaldo, Pietro, op. cit., Chapters 6 and 7.

3. Relative performance measurement and tournaments
(a) Why relative performance measurement?
(b) Direct incentive pay vs. promotion ladder with risk-neutral agent
(c) A note on the effect of risk aversion
(d) Dynamic incentives
Lazear, Edward P., op. cit., Chapter 9, p. 223 - 258; Garibaldi, Pietro, op. cit., Chapter 8.

4. Is cash all that counts? Alternative means of pay
(a) Lifetime employment contracts and pension incentives
(b) Team incentives and management compensation
(c) Fringe benefits

Lazear, Edward P.: Personnel Economics for Managers, New York, etc.: John Wiley, 1998, Chapters 8, 16, and 17.

Assessment and permitted materials

Classroom participation is immanently relevant for examination („dieser Kurs ist eine Lehrveranstaltung mit immanentem Prüfungscharakter“). To pass the course, students must collect at least half of the total points of the combined two exams, the midterm and the final exam.

Make-up exams are only available for students on sick leave (documented by immediately handing in a doctor’s sickness note at the chair’s office) or leaves supported by formal decision of the university, the faculty, and/or the institute. No passing grade may be granted if the student misses more than 10% of the total class time.

The use of AI tools (e.g. ChatGPT) for the production of texts is only permited if they are expressly requested by the course leader (e.g. for individual work tasks).

Minimum requirements and assessment criteria

Going beyond the fundamentals of incentive setting, this course discusses union and labor market regulation effects on individual firm’s employment decisions, the choice between salary and incentive pay, promotion and wage promises, as well as the benefits of alternative means of pay. Rigorous analytics are combined with econometric models to test the theories’ implications.

Examination topics

Please check Moodle

Reading list

Literature: Garibaldi, Pietro: Personnel Economics in Imperfect Labor Markets, New York, N.Y.:Oxford University Press, 2006, Chapters 1, 2, 3.

2. Salary vs. incentive pay

(a) The two basic functions of incentive pay: effort incentives and ability selection
(b) Effort incentives: a simple model
(c) Ability selection: a simple model
(d) Piece-rates vs. bonus
(e) Paying for input supply or output success

Literature: Lazear, Edward P.: Personnel Economics for Managers, New York, etc.:
John Wiley, 1998, Chapters 3 - 5, p. 45 - 131.; Garibaldo, Pietro, op. cit., Chapters 6 and 7.

3. Relative performance measurement and tournaments
(a) Why relative performance measurement?
(b) Direct incentive pay vs. promotion ladder with risk-neutral agent
(c) A note on the effect of risk aversion
(d) Dynamic incentives
Lazear, Edward P., op. cit., Chapter 9, p. 223 - 258; Garibaldi, Pietro, op. cit., Chapter 8.

4. Is cash all that counts? Alternative means of pay
(a) Lifetime employment contracts and pension incentives
(b) Team incentives and management compensation
(c) Fringe benefits

Lazear, Edward P.: Personnel Economics for Managers, New York, etc.: John Wiley, 1998, Chapters 8, 16, and 17.

Association in the course directory

Last modified: Mo 12.02.2024 11:45