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- W1562493864 abstract "We use personnel data to compare worker productivity under a relative incentive scheme, where worker pay is negatively related to the average productivity of co-workers, with productivity under piece rates – where pay is based on individual productivity alone. We find that for the average worker, productivity is at least 50% higher under piece rates. We show this is because workers partially internalize the negative externality they impose on others under the relative incentive scheme and do so to a greater extent when they work alongside their close friends. The results illustrate the importance of understanding how workers behave in the presence of externalities when designing incentive schemes." @default.
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- W1562493864 date "2004-06-01" @default.
- W1562493864 modified "2023-10-04" @default.
- W1562493864 title "Relative and absolute incentives: evidence on worker productivity" @default.
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