Status and incentives

Emmanuelle Auriol and Régis Renault

RAND Journal of Economics, 2008, vol. 39, issue 1, 305-326

Abstract: This article introduces status as reflecting an agent's claim to recognition in her work. This is a scarce resource: increasing an agent's status requires that another agent's status be decreased. Higher‐status agents are more willing to exert effort in exchange for money; better‐paid agents would exert higher effort in exchange for improved status. The results are consistent with actual management practices: (i) egalitarianism is desirable in a static context; (ii) in a long‐term work relationship, juniors' compensation is delayed; and (iii) past performance is rewarded by pay increases along with improved status within the organization's hierarchy.

Date: 2008
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Citations: View citations in EconPapers (78)

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https://doi.org/10.1111/j.1756-2171.2008.00015.x

Related works:
Working Paper: Status and Incentives (2007)
Working Paper: Status and Incentives (2007)
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