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The effect of payment medium on effort

Author

Listed:
  • Elif Incekara‐Hafalir
  • Raymond Kumar
  • Juliana Silva‐Goncalves

Abstract

Employers reward workers and researchers pay human subjects using different payment mediums. These payment mediums can have various psychological effects on workers/research participants, and thereby influence their effort provision. In this paper, we investigate the effect of payment medium on participants' effort in a lab experiment. We find evidence that payment mediums affect participants' productivity when a fixed payment scheme is used, but not under a performance‐based payment scheme.

Suggested Citation

  • Elif Incekara‐Hafalir & Raymond Kumar & Juliana Silva‐Goncalves, 2022. "The effect of payment medium on effort," Economic Inquiry, Western Economic Association International, vol. 60(3), pages 1111-1126, July.
    • Handle: RePEc:bla:ecinqu:v:60:y:2022:i:3:p:1111-1126
    DOI: 10.1111/ecin.13073
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