Group-Based Incentives and Individual Performance
A Study of the Effort Response
Bibliographic Data
| ID | 7802518 |
|---|---|
| Authors | Anders Frederiksen (0000-0002-4024-9420, corresponding author), Derek Hansen (0000-0002-9593-2841), Daniel Baltzer Schjødt Hansen, Colleen Flaherty Manchester (0000-0002-3443-9471, Anders Frederiksen is a Professor of Business Economics at Aarhus University. Daniel Baltzer Schjødt Hansen is a manager at Siemens Gamesa and affiliate to Aarhus University. Colleen Flaherty Manchester is a Professor in the Carlson School of Management at the University of Minnesota) |
| Year | 2024 |
| Volume | 77 |
| Issue | 2 |
| Pages | 273-293 |
| Publication date | 2024-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Industrial and Labor Relations Review (JOURNAL) |
| Journal identifiers | ISSN: 0019-7939 • E-ISSN: 2162-271X |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/00197939231220033 |
| OpenAlex | W4390702088 |
| Language | EN |
| Citations received | 1 |
| References cited | 16 |
Group-based incentives are attractive in contexts where production is interdependent. Prior work shows such incentives increase group performance despite freeriding concerns, yet little is known about the effort response of individuals. Using individual-level data, the authors assess the introduction of group-based performance pay using difference-in-difference estimation. Overall, performance increased by 19%. Nearly all workers contributed to this effect. Further, two-thirds of this effect stems from increased efficiency (more output per unit of time) and one-third from higher attendance. Both incentive and selection effects are present. By leveraging individual-level data, the authors pose new questions and evidence to the group-based incentives literature
Attendance · Economics · Group (periodic table) · Incentive · Interdependence · Mathematics education · Microeconomics · Piece work · Political science · Production (economics) · Unit (ring theory) · Work (physics) · Economic and Environmental Valuation · Engineering · Experimental Behavioral Economics Studies · Psychology · Taxation and Compliance Studies
| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |