IZA DP No. 5040: Getting More Work for Nothing? Symbolic Awards and Worker Performance
published in: American Economic Journal: Microeconomics, 2011, 3 (3), 86-99
We study the impact of status and social recognition on worker performance in a field experiment. In collaboration with an international non-governmental organization we hired students to work on a database project. Students in the award treatment were offered a congratulatory card from the organization honoring the best performance. The award was purely symbolic in order to ensure that any behavioral effect is driven by non-material benefits. Our results show that students in the award treatment outperform students in the control treatment by about 12 percent on average. Our results provide strong evidence for the motivating power of status and social recognition in labor relations with major implications for theory and applications.