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Effort Redirection Across Multiple Career Tracks: Salary-Cut Policy and State-Owned Enterprises in China

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Journal of Management

Published online on

Abstract

Journal of Management, Volume 52, Issue 5, Page 2000-2032, May 2026.
Prior literature in agency theory assumes that when incentives decrease, agents may shirk and reduce effort. We extend this work to multiple career tracks and suggest that a salary decrease may not necessarily lead to effort reduction, but instead may ...