Timing of Kindness - Evidence from a Field Experiment

Axel Ockenfels, Dirk Sliwka and Peter Werner

No 4885, CESifo Working Paper Series from CESifo

Abstract: We conduct a field experiment in a naturally occurring labor environment and track whether the performance of workers responds to unexpected wage increases. Specifically, we investigate how the timing of wage increases affects efforts. We find that workers’ performance is about 11% higher for the same total wage when their wage is increased in two steps as opposed to a single increase at the outset. Moreover, workers are more honest and are more willing to do voluntary extra work after surprising wage increases compared to a baseline condition without increases.

Keywords: gift exchange; positive reciprocity; field experiment; honesty (search for similar items in EconPapers)
JEL-codes: C93 D64 J33 M52 (search for similar items in EconPapers)
Date: 2014
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Related works:
Journal Article: Timing of kindness – Evidence from a field experiment (2015)
Working Paper: Timing of Kindness Evidence from a Field Experiment (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4885

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