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Authority, Incentives, and Performance: Evidence from a Chinese Newspaper

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  • Yanhui Wu

    (University of Southern California)

Abstract

This paper examines how the allocation of authority within an organization affects workers’ incentives and performance, using personnel data from a Chinese newspaper. Relying on an authority change that transferred the right of making editorial decisions from midlevel editors to top editors in four of the eight divisions in the newspaper, I find that the authority change improves reporters’ performance while reducing their activities for private gain and decreases midlevel editors’ journalistic initiative. To reconcile these findings, a synthesis of two theories on authority and incentives—the vertical and the horizontal allocation of authority—is needed.

Suggested Citation

  • Yanhui Wu, 2017. "Authority, Incentives, and Performance: Evidence from a Chinese Newspaper," The Review of Economics and Statistics, MIT Press, vol. 99(1), pages 16-31, March.
    • Handle: RePEc:tpr:restat:v:99:y:2017:i:1:p:16-31
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    Cited by:

    1. Bo, Shiyu & Wu, Yiping & Zhong, Lingna, 2020. "Flattening of government hierarchies and misuse of public funds: Evidence from audit programs in China," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 141-151.
    2. Levina, Irina, 2020. "Decentralization of firms in a country with weak institutions: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 48(4), pages 933-950.
    3. Li, Lei & Luo, Changtuo, 2023. "Does administrative decentralization promote outward foreign direct investment and productivity? Evidence from China," Economic Modelling, Elsevier, vol. 124(C).

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