Inequity aversion in three level hierarchies

Tel, Muhammed
This thesis studies the impacts of wage differences between employees and their immediate superiors in the principal-supervisor-agent framework. It integrates Fehr and Schmidt's (1999) inequity aversion approach into Tirole's (1986) three-level hierarchical model. Due to the inequity averse employees, we observe alterations in the optimal contract parameters as well as the collusion structure. If the supervisor’s sensitivity to being behind the principal is higher than the agent’s sensitivity to being behind the supervisor, the effort level induced by the principal is lower.


Labor market institutions and industrial performance: an evolutionary study
Kilicaslan, Yilmaz; Taymaz, Erol (2008-08-01)
This study investigates the impact of labor market institutions on industrial performance from a Schumpeterian perspective. We suggest that labor market institutions play a very important role in the process of creative destruction, because they may create an environment that encourages and enforces innovation, and help to reallocate resources, most importantly labor, through swift elimination of weak performers. We specifically look at the effects of the quantity of labor market regulations and inter-indus...
Hesse, Nils; Rivas, Maria Fernanda (2015-11-01)
We explore in a two-level gift-exchange experiment whether the managerial compensation influences workers' effort decisions. Firstly, we find that there exists a strong positive relation between own wage and effort levels for the workers, while the managers' effort reaches a maximum for intermediate wages and decreases for very high wages. Secondly, our data suggests that the managerial compensations are significantly negatively correlated with the workers' effort choices: the higher the manager's wage, the...
Patterns of firm growth in the Turkish manufacturing industry
Töngür, Ünal; Taymaz, Erol; Department of Economics (2015)
The main objectives of this dissertation are five-fold: First, to examine the relationship between employment generation and firm growth; second, to explore the impacts of firm and sector specific factors on firm growth by using conventional techniques; third, to discover the patterns of firm growth by using a novel statistical approach; fourth, to analyze the determinants of patterns of firm growth; and finally, to investigate the pattern-specific determinants of firm growth by taking into account the patt...
Symbolic boundaries and social capital mobilization among low-income workers in Sincan, Turkey
Uyanık, İbrahim Kaan; Rittersberger Tılıç, Helga İda; Department of Sociology (2018)
This thesis explores how low-income workers mobilize their social capital in the labor market. Distinguishing accessed social capital from mobilized social capital, it analyzes the criteria of evaluation which low-income workers in their decision to give hand to their connections in job-finding assistance. It employs the concepts of symbolic boundaries and frames to understand why some individuals are deemed unworthy of helping in the labor market. It argues that symbolic boundaries, conceptual distinctions...
Measuring and Interpreting Trends in the Division of Labour in the Netherlands
Akçomak, İbrahim Semih; TER WEEL, Bas (2011-12-01)
This paper introduces indicators about the division of labour to measure and interpret recent trends in the structure of employment in the Netherlands. Changes in the division of labour occur at three different levels: the level of the individual worker, the level of the industry and the spatial level. At each level the organisation of work is determined by an equilibrium of forces that glue tasks together or unbundle them. Communication costs are the main force for clustering or gluing together tasks; comp...
Citation Formats
M. Tel, “Inequity aversion in three level hierarchies,” M.S. - Master of Science, Middle East Technical University, 2022.