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Performance Feedback with Team Incentive: A Field Experiment in Chinese Factories

Karen Meng Li and Sang-Hyun Kim
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Karen Meng Li: Yonsei Univ

No 2020rwp-182, Working papers from Yonsei University, Yonsei Economics Research Institute

Abstract: This paper employs a field experiment to investigate in which information environment teambased incentives work better. The experiment was conducted in two spinning factories in Henan, China. We focus on workers who were doing the same individualistic task but still were paid according to team performances. For about three months, we have given three different types of performance feedback, baseline, intra-team, and inter-team feedbacks. We find that workers' productivity was highest with the intra-team feedback and lowest with the baseline feedback, which suggests that peer pressure and group status concern are of importance in making team incentives work.

Keywords: Relative performance feedback; Peer pressure; Group identity; Field experiment (search for similar items in EconPapers)
JEL-codes: C93 D91 M52 (search for similar items in EconPapers)
Pages: 22pages
Date: 2020-12
New Economics Papers: this item is included in nep-exp and nep-hrm
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Journal Article: Performance Feedback with Team Incentive: A Field Experiment in Chinese Factories (2022) Downloads
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