Hidden benefits of reward: A field experiment on motivation and monetary incentives

B-Tier
Journal: European Economic Review
Year: 2015
Volume: 76
Issue: C
Pages: 188-199

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We conducted a field experiment in a controlled work environment to investigate the effect of motivational talk and its interaction with monetary incentives. We find that motivational talk improves performance only when accompanied by performance pay. Moreover, performance pay reduces performance unless it is accompanied by motivational talk. These effects also carry over to the quality of work. Performance pay alone leads to more mistakes. Adding motivational talk makes the difference. In treatments with performance pay, motivational talk increases output by about 20 percent and reduces the ratio of mistakes by more than 40 percent.

Technical Details

RePEc Handle
repec:eee:eecrev:v:76:y:2015:i:c:p:188-199
Journal Field
General
Author Count
3
Added to Database
2026-01-25