Workplace Incentives and Organizational Learning

A-Tier
Journal: Journal of Labor Economics
Year: 2023
Volume: 41
Issue: 2
Pages: 453 - 478

Score contribution per author:

2.018 = (α=2.02 / 2 authors) × 2.0x A-tier

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

Abstract

This paper studies learning among coworkers when incentives change. We use a simple principal-agent model to show that when workers are not fully informed on the global shape of the production function, (1) their effort choice changes over time as information is disclosed and processed and (2) changing incentives can trigger this learning process. We test this prediction using personnel data from an egg production plant in Peru. Exploiting a sudden change in the contract parameters, we find that workers learn from each other over the shape of the production function. This adjustment process is costly for the firm.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/719686
Journal Field
Labor
Author Count
2
Added to Database
2026-01-24