G2TT
来源类型Discussion paper
规范类型论文
来源IDDP15790
DP15790 Leadership Styles and Labor-Market Conditions
Robert Dur; Ola Kvaløy; Anja Schöttner
发表日期2021-02-10
出版年2021
语种英语
摘要Why do some leaders use praise as a means to motivate workers, while other leaders use social punishment? This paper develops a simple economic model to examine how leadership styles depend on the prevailing labor-market conditions for workers. We show that the existence of a binding wage floor for workers (e.g., due to trade union wage bargaining, minimum-wage legislation, or limited-liability protection) can make it attractive for firms to hire a leader who makes use of social punishment. While the use of social punishments generally is socially inefficient, it lessens the need for high bonus pay, which allows the firm to extract rents from the worker. In contrast, firms hire leaders who provide praise to workers only if it is socially efficient to do so. Credible use of leadership styles requires either repeated interaction or a leader with the right social preferences. In a single-period setting, only moderately altruistic leaders use praise as a motivation tool, whereas only moderately spiteful leaders use social punishment. Lastly, we show that when the leaders' and workers' reservation utilities give rise to a bigger income gap between leaders and workers, attracting spiteful leaders becomes relatively less costly and unfriendly leadership becomes more prevalent.
主题Industrial Organization
关键词Leadership styles Incentives Motivation Social preferences Labor-market conditions Wage-setting
URLhttps://cepr.org/publications/dp15790
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/544791
推荐引用方式
GB/T 7714
Robert Dur,Ola Kvaløy,Anja Schöttner. DP15790 Leadership Styles and Labor-Market Conditions. 2021.
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