Economic theory suggests that performance pay may serve as an effective screening device to attract productive agents …. The existing evidence on the self-selection of agents is largely limited to job tasks where performance is driven by …

and cost side can be used separately to shape work performance. In our experiment, subjects work on a real-effort task … options, we explore the role of implicit costs of effort in determining workers' performance. We observe that incentive … contracts and implicit costs interact in a non-trivial manner. Performance reacts significantly to changes in implicit effort …

employee after she has inspected the employee. We find that rewards or sanctions can both discourage shirking, and have similar … effects on joint earnings. In games allowing sanctions a reduction in shirking is accomplished with a lower inspection rate … and the efficiency gains are shared more equitably. A treatment where employers can combine sanctions and rewards leads to …

employee after observing stage game payoffs. When employers have limited discretion, and can only apply sanctions and … are more effective than sanctions. In treatments where employers can combine sanctions and rewards employers rely mainly …

performance. We conduct a randomized field experiment on more than a thousand sixth graders in Swedish primary schools. Extrinsic … treatment groups. The only treatment not increasing test performance is criterion-based grading on an A-F scale, which is the … typical grading method. Test performance is significantly higher if employing rank-based grading or giving students a symbolic …

incentives influence performance in these tasks. In a series of field experiments involving more than 5,000 participants, we … performance, even among teams with strong intrinsic motivation. Bonuses also transform team organization by enhancing the demand … for leadership. Exogenously increasing teams' demand for leadership results in performance improvements comparable to …

.6 and 27.3 sliders per round, respectively. The one-slider increase in observed performance is small, not only relative to …