Perceived Income, Promotion and Incentive 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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 435.
Length: 22 pages
Date of creation: Feb 2002
Date of revision:
Publication status: published in: International Journal of Manpower, 2006, 27 (2), 104-125
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Other versions of this item:
- Epstein, Gil S & Ward-Warmedinger, Melanie, 2002. "Perceived Income, Promotion and Incentives Effects," CEPR Discussion Papers 3217, C.E.P.R. Discussion Papers.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-03-04 (All new papers)
- NEP-LAB-2002-03-04 (Labour Economics)
- NEP-MIC-2002-04-08 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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,"
CEPR Discussion Papers
3287, C.E.P.R. Discussion Papers.
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