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Smarter Task Assignment or Greater Effort: the impact of incentives on team performance

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Ratto 2009-03.pdf (456.7Kb)
Date
2010
Dewey
Economie du travail
Sujet
Public Sector; Incentives; Performance; Teams
JEL code
J33; J38
Journal issue
The Economic Journal
Volume
120
Number
547
Publication date
2010
Article pages
968-989
Publisher
Wiley
DOI
http://dx.doi.org/10.1111/j.1468-0297.2009.02331.x
URI
https://basepub.dauphine.fr/handle/123456789/4727
Collections
  • LEDa : Publications
Metadata
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Author
Propper, Carol
von Hinke Kessler Scholder, Stephanie
Tominey, Emma
Ratto, Marisa
Burgess, Simon
Type
Article accepté pour publication ou publié
Abstract (EN)
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.

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