High-Powered Performance Pay and Crowding Out of Nonmonetary Motives

Published Online:https://doi.org/10.1287/mnsc.2017.2846

References

  • Al-Ubaydli O, Andersen S, Gneezy U, List JA (2014) Carrots that look like sticks: Toward an understanding of multitasking incentive schemes. Southern Econom. J. 81(3):538–561.CrossrefGoogle Scholar
  • Baron JN, Kreps DM (1999) Strategic Human Resources: Frameworks for General Managers (Wiley, New York).Google Scholar
  • Becker A, Deckers T, Dohmen T, Falk A, Kosse F (2012) The relationship between economic preferences and psychological personality measures. Annual Rev. Econom. 4:453–478.CrossrefGoogle Scholar
  • Bellemare C, Shearer B (2011) On the relevance and composition of gifts within the firm: Evidence from field experiments. Internat. Econom. Rev. 52(3):855–882.CrossrefGoogle Scholar
  • Benabou R, Tirole J (2003) Intrinsic and extrinsic motivation. Rev. Econom. Stud. 70(3):489–520.CrossrefGoogle Scholar
  • Benabou R, Tirole J (2006) Incentives and prosocial behavior. Amer. Econom. Rev. 1652–1678.CrossrefGoogle Scholar
  • Berg J, Dickhaut J, McCabe K (1995) Trust, reciprocity, and social history. Games Econom. Behav. 10(1):122–142.CrossrefGoogle Scholar
  • Borghans L, Golsteyn BH, Heckman J, Humphries JE (2011) Identification problems in personality psychology. Personality Individual Differences 51(3):315–320.CrossrefGoogle Scholar
  • Bowles S, Gintis H, Osborne M (2001) Incentive-enhancing preferences: Personality, behavior, and earnings. Amer. Econom. Rev. 91(2):155–158.CrossrefGoogle Scholar
  • Camerer C, Babcock L, Loewenstein G, Thaler R (1997) Labor supply of new york city cabdrivers: One day at a time. Quart. J. Econom. 112(2):407–441.CrossrefGoogle Scholar
  • Carneiro P, Heckman J (2003) Human capital policy. Krueger A, Heckman J, eds. Inequality in America: What Role for Human Capital Policy? (MIT Press, Cambridge, MA), 77–240.Google Scholar
  • Carpenter JP, Dolifka D (2017) Exploitation aversion: When financial incentives fail to motivate agents. J. Econom. Psych. 61(August):213–224.CrossrefGoogle Scholar
  • Charness G, Gneezy U (2009) Incentives to exercise. Econometrica 77(3):909–931.CrossrefGoogle Scholar
  • Deci E (1971) Effects of externally mediated rewards on intrinsic motivation. J. Personality Soc. Psych. 18(1):105–115.CrossrefGoogle Scholar
  • Deci E, Koestner R, Ryan R (1999) A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psych. Bull. 125(6):627–668.CrossrefGoogle Scholar
  • Delfgaauw J, Dur R, Sol J, Verbeke W (2013) Tournament incentives in the field: Gender differences in the workplace. J. Labor Econom. 31(2):305–326.CrossrefGoogle Scholar
  • Esteves-Sorenson C, Broce R (2016) Do monetary incentives undermine performance on intrinsically enjoyable tasks? A field test. Working paper, Yale University, New Haven, CT.Google Scholar
  • Fehr E, Falk A (2002) Psychological foundations of incentives. Eur. Econom. Rev. 46(4):687–724.CrossrefGoogle Scholar
  • Fehr E, Gächter S (2002) Do incentive contracts undermine voluntary cooperation? Working paper, University of Zurich, Zurich.CrossrefGoogle Scholar
  • Fehr E, Goette L (2007) Do workers work more if wages are high? Evidence from a randomized field experiment. Amer. Econom. Rev. 97(1):298–317.CrossrefGoogle Scholar
  • Frey BS, Oberholzer-Gee F (1997) The cost of price incentives: An empirical analysis of motivation crowding-out. Amer. Econom. Rev. 87(4):746–755.Google Scholar
  • Gneezy U, Rustichini A (2000a) A fine is a price. J. Legal Stud. 29(1):1–17.CrossrefGoogle Scholar
  • Gneezy U, Rustichini A (2000b) Pay enough or don’t pay at all. Quart. J. Econom. 115(3):791–810.CrossrefGoogle Scholar
  • Gneezy U, Meier S, Rey-Biel P (2011) When and why incentives (don’t) work to modify behavior. J. Econom. Perspect. 25(4):191–209.CrossrefGoogle Scholar
  • Goldberg J (2016) Kwacha gonna do? Experimental evidence about labor supply in Rural Malawi. Amer. Econom. J.: Appl. Econom. 8(1):129–149.CrossrefGoogle Scholar
  • Heckman J (2000) Policies to foster human capital. Res. Econom. 54(1):3–56.CrossrefGoogle Scholar
  • Heckman J, Rubinstein Y (2001) The importance of noncognitive skills: Lessons from the ged testing program. Amer. Econom. Rev. 91(2):145–149.CrossrefGoogle Scholar
  • Heyman J, Ariely D (2004) Effort for payment: A tale of two markets. Psych. Sci. 15(11):787–793.CrossrefGoogle Scholar
  • Jordan P (1986) Effects of an extrinsic reward on intrinsic motivation: A field experiment. Acad. Management J. 29(2):405–412.CrossrefGoogle Scholar
  • Judge T, Higgins C, Thoresen C, Barrick M (1999) The big five personality traits, general mental ability, and career success across the life span. Personnel Psych. 52(3):621–652.CrossrefGoogle Scholar
  • Kőszegi B, Rabin M (2006) A model of reference-dependent preferences. Quart. J. Econom. 121(4):1133–1165.CrossrefGoogle Scholar
  • Kreps D (1997) Intrinsic motivation and extrinsic incentives. Amer. Econom. Rev. 87(2):359–364.Google Scholar
  • Kuhn P, Weinberger C (2005) Leadership skills and wages. J. Labor Econom. 23(3):395–436.CrossrefGoogle Scholar
  • Lazear E (2000) Performance pay and productivity. Amer. Econom. Rev. 90(5):1346–1361.CrossrefGoogle Scholar
  • Lepper M, Greene D, Nisbett R (1973) Undermining children’s intrinsic interest with extrinsic reward: A test of the “overjustification” hypothesis. J. Personality Soc. Psych. 28(1):129.CrossrefGoogle Scholar
  • Lim N, Ahearne M, Ham S (2009) Designing sales contests: Does the prize structure matter? J. Marketing Res. 46(3):356–371.CrossrefGoogle Scholar
  • Lindqvist E, Vestman R (2011) The labor market returns to cognitive and noncognitive ability: Evidence from the Swedish enlistment. Amer. Econom. J.: Appl. Econom. 3(1):101–128.CrossrefGoogle Scholar
  • Nagin D, Rebitzer J, Sanders S, Taylor L (2002) Monitoring, motivation, and management: The determinants of opportunistic behavior in a field experiment. Amer. Econom. Rev. 92(4):850–873.CrossrefGoogle Scholar
  • Non A (2012) Gift-exchange, incentives, and heterogeneous workers. Games and Econom. Behav. 75(1):319–336.CrossrefGoogle Scholar
  • Paarsch H, Shearer B (1999) The response of worker effort to piece rates: Evidence from the British Columbia tree-planting industry. J. Human Resources 34(4):643–667.CrossrefGoogle Scholar
  • Persico N, Postlewaite A, Silverman D (2004) The effect of adolescent experience on labor market outcomes: The case of height. J. Political Econom. 112(5):1019–1053.CrossrefGoogle Scholar
  • Segal C (2008) Classroom behavior. J. Human Resources 43(4):783–814.Google Scholar
  • Segal C (2012) Working when no one is watching: Motivation, test scores, and economic success. Management Sci. 58(8):1438–1457.LinkGoogle Scholar
  • Shi L (2010) Incentive effect of piece-rate contracts: Evidence from two small field experiments. BE J. Econom. Anal. Policy 10(1):1–33.Google Scholar
  • Staw BM, Calder BJ, Hess RK, Sandelands LE (1980) Intrinsic motivation and norms about payment1. J. Personality 48(1):1–14.CrossrefGoogle Scholar
  • Stutzer A, Goette L, Zehnder M (2011) Active decisions and prosocial behaviour: A field experiment on blood donation. Econom. J. 121(556):F476–F493.Google Scholar
  • Titmuss R (1970) The Gift Relationship: From Human Blood to Social Policy (George Alien & Unwin, London).Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.