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Do Incentives Matter? The Case of Navy Recruiters

Author

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  • Beth J. Asch

Abstract

This study examines how Navy recruiters in April–August 1986 responded to a multiperiod incentive plan that included piece rates, quotas, prizes, and standards. Recruiters generally produced more enlistments as they gained experience and as the date of their eligibility for a prize approached. Those with higher past output (who were thus more likely to win a prize), however, produced less as they approached the prize eligibility date. Recruiters also enlisted markedly fewer recruits immediately after winning a prize. This evidence that recruiters varied their effort over time in response to an incentive system, the author suggests, has implications for such private sector jobs as sales and tenure-track teaching.

Suggested Citation

  • Beth J. Asch, 1990. "Do Incentives Matter? The Case of Navy Recruiters," ILR Review, Cornell University, ILR School, vol. 43(3), pages 89, April.
    • Handle: RePEc:sae:ilrrev:v:43:y:1990:i:3:p:89-s-106-s
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    1. Fumarco, Luca & Longley, Neil & Palermo, Alberto & Rossi, Giambattista, 2024. "Strategic Behaviours in a Labour Market with Mobility-Restricting Contractual Provisions: Evidence from the National Hockey League," IZA Discussion Papers 16836, Institute of Labor Economics (IZA).
    2. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "Relative Income Position and Performance: An Empirical Panel Analysis," CREMA Working Paper Series 2006-03, Center for Research in Economics, Management and the Arts (CREMA).
    3. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt, 2008. "Looking Awkward When Winning and Foolish When Losing: Inequity Aversion and Performance in the Field," IEW - Working Papers 369, Institute for Empirical Research in Economics - University of Zurich.
    4. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt & Uwe Dulleck, 2008. "Inequality Aversion and Performance in and on the Field," NCER Working Paper Series 36, National Centre for Econometric Research.
    5. Torgler, Benno & Schmidt, Sascha L & Frey, Bruno S., 2006. "The Power of Positional Concerns: A Panel Analysis," Berkeley Olin Program in Law & Economics, Working Paper Series qt1z14v7zt, Berkeley Olin Program in Law & Economics.
    6. Kevin J. Stiroh, 2007. "Playing For Keeps: Pay And Performance In The Nba," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 145-161, January.
    7. Eduard Marinov, 2016. "The 2016 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 97-149.
    8. Goerg, Sebastian J. & Kube, Sebastian & Radbruch, Jonas, 2017. "The Effectiveness of Incentive Schemes in the Presence of Implicit Effort Costs," IZA Discussion Papers 10546, Institute of Labor Economics (IZA).
    9. Benno Torgler & Markus Schaffner & Sascha L. Schmidt & Bruno S. Frey, 2008. "Do Employees Care about their Relative Position? Behavioural Evidence Focusing on Performance," CREMA Working Paper Series 2008-12, Center for Research in Economics, Management and the Arts (CREMA).
    10. Hsuan-Lien Chu & Shuen-Zen Liu, 2008. "The impact of manager promotion programs on store performance: evidence from 3C chain stores in Taiwan," The Service Industries Journal, Taylor & Francis Journals, vol. 28(9), pages 1215-1224, November.
    11. Christensen, Garret, 2017. "Occupational Fatalities and the Labor Supply: Evidence from the Wars in Iraq and Afghanistan," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 182-195.
    12. Tsuru, Tsuyoshi & 都留, 康 & ツル, ツヨシ, 2008. "Incentives, Gaming, and the Nonlinear Pay Scheme: Evidence from Personnel Data in a Large Japanese Auto Sales Firm," Discussion Paper Series a510_v2, Institute of Economic Research, Hitotsubashi University.
    13. Michael T. Maloney & Robert E. McCormick, 2000. "The Response of Workers to Wages in Tournaments," Journal of Sports Economics, , vol. 1(2), pages 99-123, May.

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