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IZA Discussion Paper No. 15769
December 2022
Choice over Payment Schemes and Worker Effort

We study the effect of monetary incentives on effort in a prosocial task: writing letters encouraging voter turnout. Volunteers are randomized to receive no incentive, unconditional upfront payment, payment conditional on completing the task, or to have a choice between the two payment schemes. The unconditional and conditional payment both increase task completion rates by about 18 percentage points (43%). Giving people a choice between the payment scheme doubles the effect on task completion (35 p.p., 84%). Unlike unconditional payments, a choice over contracts also increases time spent on the task and letter quality. Survey responses suggest that giving people a choice is effective because it increases task ownership rather than the desire to return a favor or avoid feelings of guilt.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Netzwerkkoordination
Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

Über das IZA@LISER Network
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