Perceived Income, Promotion and Incentive Effects

Gil Epstein and Melanie E. Ward-Warmedinger (ward_iza@hotmail.com)
Additional contact information
Melanie E. Ward-Warmedinger: European Central Bank

No 435, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the disincentive effects of perceived underpayment on individuals’ exerted effort and promotion. To this end we develop a theoretical framework and obtain empirical evidence by analysing British academia data. We find that, tenured academics will tend to invest less effort in publishing as the difference between their perceived deserved income and actual income increases. On the other hand, for non-tenured academics this relationship is ambiguous. Our model predicts that if, however, tenured staff also derive utility directly from publication, over and above that associated with income and promotion, the difference between perceived and actual income has a smaller negative effect on the actual effort invested in research.

Keywords: productivity; underpayment; Perceived income; promotion (search for similar items in EconPapers)
JEL-codes: J3 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2002-02
New Economics Papers: this item is included in nep-lab and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: International Journal of Manpower, 2006, 27 (2), 104-125

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Related works:
Journal Article: Perceived income, promotion and incentive effects (2006)
Working Paper: Perceived Income, Promotion and Incentives Effects (2002)
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