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Author
R. Sloof
C.M. van Praag
Year
2010
Title
The effect of noise in a performance measure on work motivation: A real effort laboratory experiment
Journal
Labour Economics
Volume | Issue number
17 | 5
Pages (from-to)
751-765
Document type
Article
Faculty
Faculty of Economics and Business (FEB)
Institute
Amsterdam Business School Research Institute (ABS-RI)
Abstract
This paper reports the results of an individual real effort laboratory experiment where subjects are paid for measured performance. Measured performance equals actual performance plus noise. We compare a stable environment where the noise is small with a volatile environment where the noise is large. Subjects exert significantly more effort in the volatile environment than in the stable environment. This finding is in line with standard agency theory and contrasts the intuitive idea captured by a distinct element of expectancy theory that noisier performance measures would lower work motivation.
URL
go to publisher's site
Language
English
Permalink
http://hdl.handle.net/11245/1.333141

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