Non-Linear Incentives, Worker Productivity, and Firm Profits: Evidence from a Quasi-Experiment
نویسندگان
چکیده
Using administrative data from a major Chinese insurance firm that raised its sales targets and rewards for agents in highly non-linear incentive system, we find the improvement productivity far outweighed costs associated with bunching distortions other gaming behaviors. Labor turnover decreased, which suggests extra pay workers exceeded non-pecuniary cost of effort by workers, thus improved their well-being. The gained about two-thirds higher net output, making reform profitable. Analysis systems should accordingly focus more on productivity-enhancing than distortionary effects.
منابع مشابه
Gift giving and worker productivity: Evidence from a firm-level experiment
Article history: Received 12 December 2007 Available online 24 December 2008 JEL classification: J33 M52 C93
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3794071