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on Human Capital and Human Resource Management |
| By: | Leonardo Bursztyn (University of Chicago Department of Economics and NBER); Ewan Rawcliffe (Harvard University); Hans-Joachim Voth (University of Zurich Department of Economics and UBS Center for Economics in Society) |
| Abstract: | We study the ability of a firm to elicit repeated effort from workers by creating a “rat race†of hierarchical status-based incentives. We examine performance using data on over 5, 000 German air force pilots during World War II. Pilots’ effort is hard to monitor; motivation is key to success. Fighter pilot performance increases markedly as they approach eligibility for a medal before falling off upon receipt of the award. The same effort path repeats itself as the pilot nears the next higher prestige medal. Status-conscious pilots also exert more effort when new medals are introduced. We show that medals serve as substitutes for other forms of status. Medal cachet declines over time as lower-ability pilots receive them, making the introduction of new medals desirable. These results suggest that a tiered, expanding system of status-based incentives can repeatedly leverage worker status concerns to extract effort. |
| JEL: | D22 D91 M52 N44 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:bfi:wpaper:2026-18 |
| By: | Aldasoro, Iñaki; Gambacorta, Leonardo; Pal, Rozalia; Revoltella, Debora; Weiss, Christoph; Wolski, Marcin |
| Abstract: | This paper provides new evidence on how the adoption of artificial intelligence (AI) affects productivity and employment in Europe. Using matched EIBIS-ORBIS data on more than 12, 000 non-financial firms in the European Union (EU) and United States (US), we instrument the adoption of AI by EU firms by assigning the adoption rates of US peers to isolate exogenous technological exposure. Our results show that AI adoption increases the level of labor productivity by 4%. Productivity gains are due to capital deepening, as we find no adverse effects on firm-level employment. This suggests that AI increases worker output rather than replacing labor in the short run, though longer-term effects remain uncertain. However, productivity benefits of AI adoption are unevenly distributed and concentrate in medium and large firms. Moreover, AI-adopting firms are more innovative and their workers earn higher wages. Our analysis also highlights the critical role of complementary investments in software and data or workforce training to fully unlock the productivity gains of AI adoption. |
| Keywords: | Artificial intelligence, firm productivity, Europe, digital transformation |
| JEL: | D22 J24 L25 O33 O47 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:335876 |
| By: | Huiyu Li; Julien Sauvagnat; Tom Schmitz |
| Abstract: | Using administrative data from France, we document that within the same detailed occupation, industry, and commuting zone, workers who work from home earn on average 12% higher hourly wages than fully on-site workers. Approximately half of this wage premium is accounted for by observable worker characteristics (such as education, gender, and age) and firm characteristics (such as size and productivity). The remaining 6% wage premium largely reflects selection: workers who work from home after the COVID-19 pandemic already earned higher wages before the pandemic. |
| Keywords: | wage premium |
| Date: | 2026–02–02 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedfwp:102384 |
| By: | Kevin André Pineda-Hernández; François Rycx; Mélanie Volral; Alexandre Waroquier |
| Abstract: | While rent-sharing is known to vary according to worker characteristics, the impact of profits on the gender wage gap warrants closer examination. Most studies adopt a single-gender view, neglecting factors tied to bargaining power. Our paper aims to fill this gap by leveraging rich matched employer-employee data covering the Belgian private sector from 1999 to 2016 and by examining whether the relationship between rent-sharing and gender depends on variables reflecting bargaining power, i.e. level of education, field of study, tenure, occupation and type of wage agreement. Accounting for a wide range of individual, job and firm characteristics, and addressing potential endogeneity issues, we find a wage-profit elasticity of 2.8%, which does not differ statistically between women and men. Our results further indicate that firms share more of their profits with workers who have greater bargaining power, as assessed by our moderators. This result holds overall for both women and men, so that the price effect associated with rent-sharing is generally insignificant in explaining the gender wage gap. Conversely, given that women, regardless of their bargaining power, tend to be employed in less profitable firms than their male counterparts, the quantity effect associated with rent-sharing appears to play a non-negligible role. In short, our findings suggest that it is not so much the unequal sharing of profits within companies that fuels the gender pay gap, but rather the segregation of women, particularly those with limited bargaining power, into less profitable companies. |
| Keywords: | Rent-sharing; linked employer-employee data; wage decompositions; instrumental variables; gender wage gap; bargaining power |
| JEL: | C26 J16 J24 J31 |
| Date: | 2026–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:sol:wpaper:2013/402522 |
| By: | Stansbury, Anna; Rodriguez, Kyra |
| Abstract: | Unlike gender or race, class background is rarely a focus of research on career progression, or of DEI efforts in elite occupations. Should it be? In this paper we document a large class gap in career progression in one occupation—U.S. tenure-track academia—using parental education to proxy for class background. First-generation college graduates are 10% less likely to be tenured at an R1, are tenured at institutions ranked 11% lower, earn 3% less, and report 5% lower job satisfaction, than their former Ph.D. classmates (from the same institution and field) with a parent with a non-Ph.D. graduate degree. Neither selection out of academia nor different preferences explain this gap; differential research productivity also plays little role. Instead, likely drivers are differences in cultural and social capital. We also find a class gap in career progression for Ph.D.s who work in industry, suggesting this phenomenon generalizes outside academia. (Stone Center on Socio-Economic Inequality Working Paper) |
| Date: | 2026–02–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ugdjf_v1 |