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Effort and Social Comparison

Experimental Evidence from Uganda

Dados Bibliográficos

ID5138780
AutoresBen D’exelle (University of East Anglia), Rik Habraken (Royal Tropical Institute), Arjan Verschoor (0000-0002-7770-6832, University of East Anglia)
Ano2024
Volume72
Fascículo4
Páginas1769-1793
Data de publicação2024-07-01
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoEconomic Development and Cultural Change (JOURNAL)
Identificadores do periódicoISSN: 0013-0079 • E-ISSN: 1539-2988
EditoraUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/725231
OpenAlexW4361217037
IdiomaEN
Referências citadas31

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

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