Universität Wien

040688 FK KFK PÖ: Advanced Personnel Economics (2008W)

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

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

  • Tuesday 07.10. 14:00 - 16:00 Hörsaal 7
  • Tuesday 14.10. 14:00 - 16:00 Hörsaal 7
  • Tuesday 21.10. 14:00 - 16:00 Hörsaal 7
  • Tuesday 28.10. 14:00 - 16:00 Hörsaal 7
  • Tuesday 04.11. 14:00 - 16:00 Hörsaal 7
  • Tuesday 11.11. 14:00 - 16:00 Hörsaal 7
  • Tuesday 18.11. 14:00 - 16:00 Hörsaal 7
  • Tuesday 25.11. 14:00 - 16:00 AudiMax BWZ
  • Tuesday 02.12. 14:00 - 16:00 Hörsaal 7
  • Tuesday 09.12. 14:00 - 16:00 Hörsaal 7
  • Tuesday 16.12. 14:00 - 16:00 Hörsaal 7
  • Tuesday 13.01. 14:00 - 16:00 Hörsaal 7
  • Tuesday 20.01. 14:00 - 16:00 Hörsaal 7
  • Tuesday 27.01. 14:00 - 16:00 AudiMax BWZ

Information

Aims, contents and method of the course

Course Outline and Required Readings:

1. Introduction

(a) Some stylized facts concerning wage-differentials
(b) Basics of wage-setting in firms
(c) Determining the base wage
(d) Forms of incentive pay
(e) Fringe or social benefits

Baron, James N.; Kreps, David M.: Strategic Human Resources:
Frameworks for General Managers, New York, etc.: John Wiley,
1999, Chapter 12: Compensation Systems. Forms, Bases and
Distribution of Reward, p. 284 - 312.

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

Lazear, Edward P.: Personnel Economics for Managers, New York,
etc.: John Wiley, 1998, Chapters 3 - 5, p. 45 - 131.

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

Lazear, Edward P., op. cit., Chapter 9, p. 223 - 258.

4. The Enhanced Incentive Structure

(a) Lifetime employment contracts and pension incentives
(b) The problem of setting incentives in teams and management compensation
(c) Fringe Benefits

Lazear, Edward P., op. cit., Chapter 8, p. 195 - 222; Chapters 16
and 17, p. 441 - 504.

5. Self-Selection and Recruitment
(a) Characteristics of a job
(b) Self-selection of worker-types
(c) Testing and recruiting

Lazear, Edward P., op. cit., Chapters 11-15, p. 281 - 440.

Assessment and permitted materials

This class is immanently relevant for examination ("dieser Kurs ist eine Lehrveranstaltung mit immanentem Prüfungscharakter"). Students can earn a maximum of 50 points on each of the two exams, the midterm and the final. *To pass the course students must collect a total of 50 points or more. *

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.

Minimum requirements and assessment criteria

The course covers the following topics: (1) Introduction: basics of wage-setting in firms; (2) Salary vs. Incentive Pay; (3) Relative Performance Measurement and Tournaments; (4) The Enhanced Incentive Structure: lifetime employment contracts and pension incentives; reputational contracting and verification; the problem of setting incentives in teams and management compensation; "Fringe Benefits"; (5) Self-Selection and Recruitment

Examination topics

Reading list

Readings

It is necessary that students prepare selected chapters from textbooks listed in the course outline above.

Association in the course directory

Last modified: Mo 07.09.2020 15:29