TY  - RPRT
        AU  - Amodio, Francesco
AU  - Martinez-Carrasco, Miguel A.
        TI  - Workplace Incentives and Organizational Learning
        PY  - 2020/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13898
        UR  - https://www.iza.org/publications/dp13898
        AB  - This paper studies learning within organizations when incentives change. We use a simple principal-agent model to show how, in the presence of imperfect information over the shape of the production function, worker's effort choice changes over time as information is disclosed and processed. We also show that changes in workers compensation can trigger such learning process. We test this hypothesis using personnel records from a Peruvian egg production plant. Exploiting a sudden change in the compensation schedule, we find that workers learn from each other over the shape of the production function. This adjustment process is costly for the firm.
        KW  - organizational learning
KW  - workplace incentives
KW  - inputs
        ER  -