We use an experiment to study the impact of team-based incentives, exploiting rich data from personnel records and management information systems. Using a triple difference design, we show that the incentive scheme had an impact on team performance, even with quite large teams. We examine
whether this effect was due to increased effort from workers or strategic task reallocation. We find that
the provision of financial incentives did raise individual performance but that managers also
disproportionately reallocated efficient workers to the incentivised tasks. We show that this reallocation
was the more important contributor to the overall outcome.
