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NATIONAL BUREAU OF ECONOMIC RESEARCH

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NBER Working Papers and Publications

March 2007Subjective Evaluation of Performance Through Individual Evaluation Interview: Empirical evidence from France
with Nathalie Greenan, Michal Urdanivia: w12979
Individual evaluation interviews have become a widespread practice. 52% of employees in French manufacturing firms over 50 employees declared an annual individual evaluation interview in 1997. However whereas the problem of constructing an optimal contract with subjective evaluation (which is defined simply as a signal in most papers) receives a large attention, firm-level evaluation interviews are strikingly left aside from economic analysis. This paper aims at identifying the underlying logics of individual evaluation interviews in the case of individual production and of team production. Especially, it aims at analyzing the relationships between effort, wage distribution within the firms and individual evaluation interviews. From a theoretical standpoint, three papers by Alchian and Dem...
 
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