The Relationship between Delegation and Incentives Across Occupations: Evidence and Theory

A-Tier
Journal: Journal of Industrial Economics
Year: 2015
Volume: 63
Issue: 2
Pages: 279-312

Authors (2)

Jed De Varo (not in RePEc) Suraj Prasad (University of Sydney)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

type="main"> <p>A large literature suggests that incentive pay and delegation of worker authority are positively related. Using data from a large cross section of British establishments, we show that the positive relationship found in the empirical literature masks a stark difference across jobs. Classifying jobs into two categories (complex jobs, including professional, technical and scientific occupations, and simple jobs, consisting of all other non-managerial occupations) we find a positive relationship for simple jobs and a negative relationship for complex jobs. To explain this negative relationship, we develop a model where stronger incentives distort a worker's decisions towards low risk-return tasks.

Technical Details

RePEc Handle
repec:bla:jindec:v:63:y:2015:i:2:p:279-312
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29