Perceived Income, Promotion and Incentives Effects
AbstractThis Paper examines the disincentive effects of perceived underpayment on individuals’ exerted effort and promotion. To this end we develop a theoretical framework and obtain empirical evidence by analysing British academia data. We find that, tenured academics will tend to invest less effort in publishing as the difference between their perceived deserved income and actual income increases. On the other hand, for non-tenured academics this relationship is ambiguous. Our model predicts that if, however, tenured staff also derive utility directly from publication, over and above that associated with income and promotion, the difference between perceived and actual income has a smaller negative effect on the actual effort invested in research.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3217.
Date of creation: Feb 2002
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- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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- Epstein, Gil S. & Spiegel, Uriel, 2001. "Natural inequality, production and economic growth," Labour Economics, Elsevier, vol. 8(4), pages 463-473, September.
- Epstein, Gil S., 2002.
"Informational Cascades and Decision to Migrate,"
IZA Discussion Papers
445, Institute for the Study of Labor (IZA).
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