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What is an Award Worth? An Econometric Assessment of the Impact of Awards on Employee Performance

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Author Info

  • Susanne Neckermann
  • Reto Cueni
  • Bruno S. Frey

Abstract

Behavioral economics documents the importance of status and self-image concerns in the workplace, but is largely silent about how to instrumentalize them to induce effort. Awards - widespread in the corporate sector and elsewhere - are motivators that derive their value from such social concerns. Panel data from the call center of a large international bank allow us to estimate the impact of receiving an award on effort. The performance of winners proves to be significantly higher than that of comparable non-recipients after the award has been presented. This increase in work effort is sizeable, robust, and not driven by reverse causation.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2009/wp-cesifo-2009-05/cesifo1_wp2657.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2657.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2657

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Related research

Keywords: awards; motivation; non-monetary compensation; event-study; incentives;

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References

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  1. Michael Greenstone & Enrico Moretti, 2003. "Bidding for Industrial Plants: Does Winning a 'Million Dollar Plant' Increase Welfare?," NBER Working Papers 9844, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Bruno S. Frey & Susanne Neckermann, 2010. "Awards As Signals," CREMA Working Paper Series 2010-21, Center for Research in Economics, Management and the Arts (CREMA).
  2. Bruno S. Frey & Susanne Neckermann, 2008. "Academics Appreciate Awards. A New Aspect of Incentives in Research," CREMA Working Paper Series 2008-32, Center for Research in Economics, Management and the Arts (CREMA).
  3. Bruno S. Frey, 2010. "Geld oder Anerkennung? Zur Ökonomik der Auszeichnungen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(1), pages 1-15, 02.

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