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Query: faculty: "FEB" and publication year: "2010"

AuthorsE. Leuven, H. Oosterbeek, B. van der Klaauw
TitleThe effect of financial rewards on students' achievement: Evidence from a randomized experiment
JournalJournal of the European Economic Association
Volume8
Year2010
Issue6
Pages1243-1265
ISSN15424766
FacultyFaculty of Economics and Business
Institute/dept.FEB: Amsterdam School of Economics Research Institute (ASE-RI)
AbstractThis paper reports on a randomized field experiment in which first-year university students could earn financial rewards for passing all first-year requirements within one year. Financial incentives turn out to have positive effects on achievement of high-ability students, whereas they have a negative impact on achievement of low-ability students. After three years these effects have increased, suggesting dynamic spillovers. The negative effects for less-able students are consistent with results from psychology and behavioral economics showing that external rewards may be detrimental for intrinsic motivation.
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