Public-private differences in incentive structures: a laboratory experiment on work motivation and performance

In this study, we contribute to a longstanding research agenda on the distinctions between public and private sectors by examining whether work effort differs settings, testing ways that sector-specific incentives can address such differences. We extend existing developing an advanced psychomotor vigilance task examines multi-dimensional performance (speed accuracy) in laboratory experiment. Drawing from population is similar along many dimensions, subjects are recruited into settings basis of their motivation (majors they have chosen study types compensation receive). Using two-by-two factorial design (public job motivated non-monetary motivated) (monetary-motivated) with without incentives, our findings indicate differ response incentives. Methodologically, show how choices experimental make be exploited for modeling sectoral differences more naturalistic way than short-term prime, while preserving advantages controlled