IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/51614.html
   My bibliography  Save this paper

No margin, no mission?: a field experiment on incentives for pro-social tasks

Author

Listed:
  • Ashraf, Nava
  • Bandiera, Oriana
  • Jack, Kelsy

Abstract

A substantial body of research investigates the design of incentives in firms, yet less is known about incentives in organizations that hire individuals to perform tasks with positive social spillovers. We conduct a field experiment in which agents hired by a public health organization are randomly allocated to four groups. Agents in the control group receive a standard volunteer contract often offered for this type of task, whereas agents in the three treatment groups receive small financial rewards, large financial rewards, and non-financial rewards, respectively. The analysis yields three main findings. First, non-financial rewards are more effective at eliciting effort than either financial rewards or the volunteer contract. The effect of financial rewards, both large and small, is much smaller and not significantly different from zero. Second, non-financial rewards elicit effort both by leveraging intrinsic motivation for the cause and by facilitating social comparison among agents. Third, contrary to existing laboratory evidence, financial incentives do not crowd out intrinsic motivation in this setting.

Suggested Citation

  • Ashraf, Nava & Bandiera, Oriana & Jack, Kelsy, 2012. "No margin, no mission?: a field experiment on incentives for pro-social tasks," LSE Research Online Documents on Economics 51614, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:51614
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/51614/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bruno S. Frey & Susanne Neckermann, 2008. "Awards: A view from psychological economics," IEW - Working Papers 357, Institute for Empirical Research in Economics - University of Zurich.
    2. Neckermann, Susanne & Cueni, Reto & Frey, Bruno S., 2014. "Awards at work," Labour Economics, Elsevier, vol. 31(C), pages 205-217.
    3. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 791-810.
    4. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2005. "Social Preferences and the Response to Incentives: Evidence from Personnel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 917-962.
    5. Timothy Besley & Maitreesh Ghatak, 2008. "Status Incentives," American Economic Review, American Economic Association, vol. 98(2), pages 206-211, May.
    6. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June.
    7. Dan Ariely & Anat Bracha & Stephan Meier, 2009. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," American Economic Review, American Economic Association, vol. 99(1), pages 544-555, March.
    8. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    9. Thomas Dohmen & Armin Falk, 2011. "Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender," American Economic Review, American Economic Association, vol. 101(2), pages 556-590, April.
    10. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2008. "Anonymity, reciprocity, and conformity: Evidence from voluntary contributions to a national park in Costa Rica," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1047-1060, June.
    11. Michael Kosfeld & Susanne Neckermann, 2011. "Getting More Work for Nothing? Symbolic Awards and Worker Performance," American Economic Journal: Microeconomics, American Economic Association, vol. 3(3), pages 86-99, August.
    12. Paul Glewwe & Nauman Ilias & Michael Kremer, 2010. "Teacher Incentives," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 205-227, July.
    13. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2011. "Field Experiments with Firms," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 63-82, Summer.
    14. Eriksson, Tor & Villeval, Marie Claire, 2010. "Respect as an Incentive," Working Papers 10-8, University of Aarhus, Aarhus School of Business, Department of Economics.
    15. Benny Moldovanu & Aner Sela & Xianwen Shi, 2007. "Contests for Status," Journal of Political Economy, University of Chicago Press, vol. 115(2), pages 338-363.
    16. Carl Mellström & Magnus Johannesson, 2008. "Crowding Out in Blood Donation: Was Titmuss Right?," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 845-863, June.
    17. Craig Landry & Andreas Lange & John List & Michael Price & Nicholas Rupp, 2011. "The Hidden Benefits of Control: Evidence from a Natural Field Experiment," Natural Field Experiments 00594, The Field Experiments Website.
    18. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2007. "Incentives for Managers and Inequality among Workers: Evidence from a Firm-Level Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 729-773.
    19. Sebastian Kube & Michel Andre Marechal & Clemens Puppe, 2012. "The Currency of Reciprocity: Gift Exchange in the Workplace," American Economic Review, American Economic Association, vol. 102(4), pages 1644-1662, June.
    20. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    21. Soetevent, Adriaan R., 2005. "Anonymity in giving in a natural context--a field experiment in 30 churches," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2301-2323, December.
    22. Lacetera, Nicola & Macis, Mario, 2008. "Social Image Concerns and Pro-Social Behavior," IZA Discussion Papers 3771, Institute of Labor Economics (IZA).
    23. Karthik Muralidharan & Venkatesh Sundararaman, 2011. "Teacher Performance Pay: Experimental Evidence from India," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 39-77.
    24. Adriaan Soetevent, 2005. "Anonymity in giving in a natural context-a field experiment in thirty churches," Framed Field Experiments 00198, The Field Experiments Website.
    25. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(3), pages 489-520.
    26. Alain Cohn & Ernst Fehr & Benedikt Herrmann & Frédéric Schneider, 2011. "Social comparison in the workplace: evidence from a field experiment," ECON - Working Papers 007, Department of Economics - University of Zurich.
    27. Soetevent, Adriaan R., 2003. "Anonymity in giving in a natural context : an economic field experiment in thirty churches," CCSO Working Papers 200308, University of Groningen, CCSO Centre for Economic Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ashraf, Nava & Bandiera, Oriana & Jack, B. Kelsey, 2014. "No margin, no mission? A field experiment on incentives for public service delivery," Journal of Public Economics, Elsevier, vol. 120(C), pages 1-17.
    2. Timothy Gubler & Ian Larkin & Lamar Pierce, 2016. "Motivational Spillovers from Awards: Crowding Out in a Multitasking Environment," Organization Science, INFORMS, vol. 27(2), pages 286-303, April.
    3. McManus, T. Clay & Rao, Justin M., 2015. "Signaling smarts? Revealed preferences for self and social perceptions of intelligence," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 106-118.
    4. Luigino Bruni & Vittorio Pelligra & Tommaso Reggiani & Matteo Rizzolli, 2020. "The Pied Piper: Prizes, Incentives, and Motivation Crowding-in," Journal of Business Ethics, Springer, vol. 166(3), pages 643-658, October.
    5. Linardi, Sera & McConnell, Margaret A., 2011. "No excuses for good behavior: Volunteering and the social environment," Journal of Public Economics, Elsevier, vol. 95(5), pages 445-454.
    6. Alpízar, F. & Gsottbauer, E., 2015. "Reputation and household recycling practices: Field experiments in Costa Rica," Ecological Economics, Elsevier, vol. 120(C), pages 366-375.
    7. Gary Charness & David Masclet & Marie Claire Villeval, 2014. "The Dark Side of Competition for Status," Management Science, INFORMS, vol. 60(1), pages 38-55, January.
    8. Daniel Jones & Sera Linardi, 2012. "Wallflowers Doing Good: Field and Lab Evidence of Heterogeneity in Reputation Concerns," Working Paper 485, Department of Economics, University of Pittsburgh.
    9. David Clingingsmith & Roman M. Sheremeta, 2018. "Status and the demand for visible goods: experimental evidence on conspicuous consumption," Experimental Economics, Springer;Economic Science Association, vol. 21(4), pages 877-904, December.
    10. Wang, Xia & Tong, Luqiong, 2015. "Hide the light or let it shine? Examining the factors influencing the effect of publicizing donations on donors’ happiness," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 418-424.
    11. Dan Ariely & Anat Bracha & Stephan Meier, 2009. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," American Economic Review, American Economic Association, vol. 99(1), pages 544-555, March.
    12. Erlend Berg & Maitreesh Ghatak & R Manjula & D Rajasekhar & Sanchari Roy, 2019. "Motivating Knowledge Agents: Can Incentive Pay Overcome Social Distance?," The Economic Journal, Royal Economic Society, vol. 129(617), pages 110-142.
    13. Sheheryar Banuri & Philip Keefer & Damien de Walque, 2017. "Love the job... or the patient? Task vs. mission-based motiviations in healthcare," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 17-09, School of Economics, University of East Anglia, Norwich, UK..
    14. Jana Gallus, 2016. "Fostering Voluntary Contributions to a Public Good: A Large-Scale Natural Field Experiment at Wikipedia," Natural Field Experiments 00552, The Field Experiments Website.
    15. Jana Gallus, 2017. "Fostering Public Good Contributions with Symbolic Awards: A Large-Scale Natural Field Experiment at Wikipedia," Management Science, INFORMS, vol. 63(12), pages 3999-4015, December.
    16. Raja Kali & David Pastoriza & Jean‐François Plante, 2018. "The burden of glory: Competing for nonmonetary incentives in rank‐order tournaments," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 102-118, March.
    17. Ferdinand A. von Siemens, 2020. "I care what you think: social image concerns and the strategic revelation of past pro-social behavior," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 6(1), pages 43-56, June.
    18. Daniel Jones & Sera Linardi, 2014. "Wallflowers: Experimental Evidence of an Aversion to Standing Out," Management Science, INFORMS, vol. 60(7), pages 1757-1771, July.
    19. Martinsson, Peter & Villegas-Palacio, Clara, 2010. "Does disclosure crowd out cooperation?," Working Papers in Economics 446, University of Gothenburg, Department of Economics.
    20. repec:bri:cmpowp:13/316 is not listed on IDEAS
    21. Julian Conrads & Bernd Irlenbusch & Tommaso Reggiani & Rainer Michael Rilke & Dirk Sliwka, 2016. "How to hire helpers? Evidence from a field experiment," Experimental Economics, Springer;Economic Science Association, vol. 19(3), pages 577-594, September.

    More about this item

    Keywords

    incentives; non-monetary rewards; intrinsic motivation;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • 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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:51614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.