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In a randomized field experiment, we investigate the connection between work goals, monetary incentives, and work performance. Employees are observed in a natural work environment where they have to do a simple, but effort-intense task. Output is perfectly observable and workers are paid for...
Persistent link: https://www.econbiz.de/10013099561
We investigate the efficiency of piece-rate contracts using data from a field experiment, conducted within a tree-planting firm. During the experiment, the piece rate paid to planters was exogenously increased. Regression methods yield an estimate of the elasticity of output with respect to...
Persistent link: https://www.econbiz.de/10014052922
The provision of social incentives in the workplace, where performance benefits a charitable cause, has been frequently used in modern organizations. In this paper, we quantify the impact of social incentives on performance under two incentive schemes: piece rate and a winner-take-all...
Persistent link: https://www.econbiz.de/10012798210
Persistent link: https://www.econbiz.de/10013466718
In a randomized field experiment, we investigate the connection between work goals, monetary incentives, and work performance. Employees are observed in a natural work environment where they have to do a simple, but effort-intense task. Output is perfectly observable and workers are paid for...
Persistent link: https://www.econbiz.de/10009627350
We conducted two field experiments in a tree-thinning setting. In one experiment, we switched the pay of a randomly chosen half (the treatment group) from hourly wages to piece rate pay. Workers in the control group were paid hourly wages throughout. In the second experiment, workers were...
Persistent link: https://www.econbiz.de/10013099502
We present results from a field experiment designed to measure the importance of managerial commitment to a contract within a firm that pays its workers piece rates. In the tree planting industry the piece rate paid to workers is determined as a function of the difficulty of the terrain to be...
Persistent link: https://www.econbiz.de/10010359307
We present results from a field experiment designed to measure the importance of managerial commitment to a contract within a firm that pays its workers piece rates. In the tree planting industry the piece rate paid to workers is determined as a function of the difficulty of the terrain to be...
Persistent link: https://www.econbiz.de/10010384384
Persistent link: https://www.econbiz.de/10009554030
The simple trade-off between incentive and risk, which is crucial to the agency problem, is not a sufficient explanation for the ineffectiveness of a specific output-related pay such as the contract system adopted in the US iron and steel industry during the second half of the...
Persistent link: https://www.econbiz.de/10013090047