Effort and Social Comparison: Experimental Evidence from Uganda

Ben D’Exelle, Rik Habraken and Arjan Verschoor

Economic Development and Cultural Change, 2024, vol. 72, issue 4, 1769 - 1793

Abstract: Individual effort is key to generate income and escape from poverty. In small-scale societies in developing countries, where effort and resulting income are easily observable, social comparison can influence effort in both positive and negative ways. In addition, the effects of social comparison are less obvious where income depends on both the quality and quantity of production. To study the effects of social comparison, we use a lab experiment in which participants conduct a real-effort task characterized by a quantity-quality trade-off. We experimentally vary (1) whether feedback is provided about peers’ performance and (2) whether one can reduce peers’ earnings by so-called money burning. We find that feedback about peers’ performance increases the earnings of low performers as they shift effort from quantity to quality. High performers shift effort to quality only when they are targeted by money burning. Given the different response of low and high performers, the provision of feedback about peers’ performance reduces inequality in earnings but not when money burning is an option. Anticipating these social-comparison effects can help policymakers who work with groups or communities to optimize policy design.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/725231 (application/pdf)
http://dx.doi.org/10.1086/725231 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:ecdecc:doi:10.1086/725231

Access Statistics for this article

More articles in Economic Development and Cultural Change from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().