Risk-sorting and preference for team piece rates

Agnes Bäker and Vanessa Mertins

Journal of Economic Psychology, 2013, vol. 34, issue C, 285-300

Abstract: Incentive schemes not only influence the effort provision of workers, but might also induce sorting. As drivers of self-selection, the literature mainly focuses on measures of productivity; however, other variables, such as preferences, beliefs and personality, also play a role. With this paper, we contribute to the literature on drivers of self-selection by analyzing the role of perceived wage risks as potential influences on the sorting decision. To this end, we study a sorting decision between two variable compensation systems, where both options carry wage risks. Specifically, we look at sorting between individual piece rates and team piece rates.

Keywords: Risk perception; Sorting; Preferred rewards; Productivity (search for similar items in EconPapers)
JEL-codes: C91 D81 J33 M52 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:34:y:2013:i:c:p:285-300

DOI: 10.1016/j.joep.2012.10.010

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