Pledging, Praising and Shaming: Experimental Labour Markets in Ghana

Elwyn Davies () and Marcel Fafchamps
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Elwyn Davies: University of Oxford

No 10520, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Firm surveys have shown that labour management in developing countries is often problematic. Earlier experimental research (Davies & Fafchamps, 2017) has shown that managers in Ghana are reluctant to use monetary incentives to motivate workers. This paper presents the results from a gift-exchange game experiment in Ghana in which the worker can make a promise to the employer before a contract is offered (ex ante communication) and in which the employer can send negative or positive feedback to the worker after the worker has chosen effort (ex post communication). The results indicate that feedback can help sustain cooperate behaviour (high effort provision), but only if the wage offered is high enough. Feedback reinforces reciprocity concerns on the behalf of the worker. In particular positive messages (praising) leads to higher effort provision, no significant relation between negative feedback and effort can be found. Promises are related to higher effort, but do not necessarily lead to higher wages.

Keywords: worker incentives; gift exchange; effort; worker criticism; communication (search for similar items in EconPapers)
JEL-codes: C71 D2 D86 E24 O16 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2017-01
New Economics Papers: this item is included in nep-exp, nep-hrm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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