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The Role of Career and Wage Incentives in Labor Productivity: Evidence from a Two-Stage Field Experiment in Malawi

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  • Hyuncheol Bryant Kim

    (Hong Kong University of Science and Technology, and Cornell University)

  • Seonghoon Kim

    (Singapore Management University)

  • Thomas T. Kim

    (Ohio State University)

Abstract

We study how career and wage incentives affect labor productivity through self-selection and incentive effect channels using a two-stage field experiment in Malawi. First, recent secondary school graduates were hired with either career or wage incentives. After employment, half of the workers with career incentives randomly received wage incentives, and half of the workers with wage incentives randomly received career incentives. Career incentives attract higher-performing workers than wage incentives do, but they do not increase productivity conditional on selection. Wage incentives increase productivity for those recruited through career incentives. Observable characteristics are limited in explaining selection effects of entry-level workers.

Suggested Citation

  • Hyuncheol Bryant Kim & Seonghoon Kim & Thomas T. Kim, 2020. "The Role of Career and Wage Incentives in Labor Productivity: Evidence from a Two-Stage Field Experiment in Malawi," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 839-851, December.
    • Handle: RePEc:tpr:restat:v:102:y:2020:i:5:p:839-851
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest_a_00854
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    References listed on IDEAS

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    Cited by:

    1. Hyuncheol Bryant Kim & Hyunseob Kim & John Zhu, 2022. "The Selection Effects of Part-Time Work: Experimental Evidence from a Large-Scale Recruitment Drive," Working Paper Series WP 2022-51, Federal Reserve Bank of Chicago.

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