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Do incentives matter? The case of Navy recruiters

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Author Info
Beth J. Asch
Abstract

This study examines how Navy recruiters in April-August 1986 responded to a multiperiod incentive plan that included piece rates, quotas, prizes, and standards. Recruiters generally produced more enlistments as they gained experience and as the date of their eligibility for a prize approached. Those with higher past output (who were thus more likely to win a prize), however, produced less as they approached the prize eligibility date. Recruiters also enlisted markedly fewer recruits immediately after winning a prize. This evidence that recruiters varied their effort over time in response to an incentive system, the author suggests, has implications for such private sector jobs as sales and tenure-track teaching. (Abstract courtesy JSTOR.)

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Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 43 (1990)
Issue (Month): 3 (February)
Pages: 89-106
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Handle: RePEc:ilr:articl:v:43:y:1990:i:3:p:89-106

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  1. Benno Torgler & Markus Schaffner & Bruno S.Frey & Sascha L. Schmidt, 2008. "Looking Awkward When Winning and Foolish When Losing: Inequity Aversion and Performance in the Field," School of Economics and Finance Discussion Papers and Working Papers Series 230, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
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  2. Edward P. Lazear & Kathryn L. Shaw, 2007. "Personnel Economics: The Economist's View of Human Resources," NBER Working Papers 13653, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Tsuyoshi Tsuru, 2007. "Transforming Incentives: Analysis of Personnel and Employee Output Data in a Large J apanese Auto Sales Firm," Discussion Paper Series a496, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  4. Jose E. Quintero Jaramillo, 2004. "Moral Hazard In Teams With Limited Punishments And Multiple Outputs," Business Economics Working Papers wb040705, Universidad Carlos III, Departamento de Economía de la Empresa. [Downloadable!]
  5. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "Relative Income Position And Performance: An Empirical Panel Analysis," IEW - Working Papers iewwp268, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  6. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December. [Downloadable!] (restricted)
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  7. Peter Egger & Doina Maria Radulescu, 2008. "Labour Taxation and Foreign Direct Investment," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  8. Robert Gibbons, 1997. "Incentives and Careers in Organizations," NBER Working Papers 5705, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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