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The motivating effect of monetary over psychological incentives is stronger in WEIRD cultures

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Listed:
  • Danila Medvedev

    (University of Chicago, Booth School of Business)

  • Diag Davenport

    (Princeton University, School of Public and International Affairs)

  • Thomas Talhelm

    (University of Chicago, Booth School of Business)

  • Yin Li

    (Yale University, Yale School of Management)

Abstract

Motivating effortful behaviour is a problem employers, governments and nonprofits face globally. However, most studies on motivation are done in Western, educated, industrialized, rich and democratic (WEIRD) cultures. We compared how hard people in six countries worked in response to monetary incentives versus psychological motivators, such as competing with or helping others. The advantage money had over psychological interventions was larger in the United States and the United Kingdom than in China, India, Mexico and South Africa (N = 8,133). In our last study, we randomly assigned cultural frames through language in bilingual Facebook users in India (N = 2,065). Money increased effort over a psychological treatment by 27% in Hindi and 52% in English. These findings contradict the standard economic intuition that people from poorer countries should be more driven by money. Instead, they suggest that the market mentality of exchanging time and effort for material benefits is most prominent in WEIRD cultures.

Suggested Citation

  • Danila Medvedev & Diag Davenport & Thomas Talhelm & Yin Li, 2024. "The motivating effect of monetary over psychological incentives is stronger in WEIRD cultures," Nature Human Behaviour, Nature, vol. 8(3), pages 456-470, March.
    • Handle: RePEc:nat:nathum:v:8:y:2024:i:3:d:10.1038_s41562-023-01769-5
    DOI: 10.1038/s41562-023-01769-5
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