Effort and Social Comparison

Experimental Evidence from Uganda

Bibliographic Data

ID5138780
AuthorsBen D’exelle (University of East Anglia), Rik Habraken (Royal Tropical Institute), Arjan Verschoor (0000-0002-7770-6832, University of East Anglia)
Year2024
Volume72
Issue4
Pages1769-1793
Publication date2024-07-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/725231
OpenAlexW4361217037
LanguageEN
References cited31

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

Download · Library science · Political science · Sociology · World Wide Web · Computer Science · Culture, Economy, and Development Studies · Economic Policies and Impacts · Experimental Behavioral Economics Studies