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Motivating gig workers – evidence from a field experiment

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  • Butschek, Sebastian
  • González Amor, Roberto
  • Kampkötter, Patrick
  • Sliwka, Dirk

Abstract

We study the role of risk aversion and intrinsic motivation in how the payment scheme affects the performance of an online platform’s freelancers. Our RCT varied whether freelancers were only paid a pure sales commission or a lower commission combined with a fixed payment per order to provide insurance against income fluctuations. We do not find evidence for effect heterogeneity with respect to risk aversion, but sizeable heterogeneity with respect to intrinsic motivation: While – in line with standard theory – the treatment reduced performance for less intrinsically motivated workers, it increased performance among workers with a high task motivation.

Suggested Citation

  • Butschek, Sebastian & González Amor, Roberto & Kampkötter, Patrick & Sliwka, Dirk, 2022. "Motivating gig workers – evidence from a field experiment," Labour Economics, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:labeco:v:75:y:2022:i:c:s0927537121001408
    DOI: 10.1016/j.labeco.2021.102105
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    1. Groß, Mona & Hennig-Schmidt, Heike & Wiesen, Daniel, 2023. "Personality and physician performance pay: Evidence from a behavioral experiment in health," HERO Online Working Paper Series 2023:5, University of Oslo, Health Economics Research Programme.

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    More about this item

    Keywords

    Incentives; Risk aversion; Intrinsic motivation; Sales compensation; Multitasking; Field experiment; Gig economy; On demand economy; Platform economy;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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