Discretion, Productivity and Work Satisfaction
AbstractIn Bartling, Fehr and Schmidt (2012) we show theoretically and experimentally that it is optimal to grant discretion to workers if (i) discretion increases productivity, (ii) workers can be screened by past performance, (iii) some workers reciprocate high wages with high effort and (iv) employers pay high wages leaving rents to their workers. In this paper we show experimentally that the productivity increase due to discretion is not only sufficient but also necessary for the optimality of granting discretion to workers. Furthermore, we report representative survey evidence on the impact of discretion on workersâ€™ welfare, confirming that workers earn rents.
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Bibliographic InfoPaper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 383.
Date of creation: Jun 2012
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More information through EDIRC
high-performance work systems; wages; discretion; gift exchange; job satisfaction;
Other versions of this item:
- Björn Bartling & Ernst Fehr & Klaus M. Schmidt, 2013. "Discretion, Productivity, and Work Satisfaction," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(1), pages 4-22, March.
- Bartling, Björn & Fehr, Ernst & Schmidt, Klaus M., 2013. "Discretion, productivity, and work satisfaction," Munich Reprints in Economics 20127, University of Munich, Department of Economics.
- Bartling, Björn & Fehr, Ernst & Schmidt, Klaus M., 2012. "Discretion, Productivity, and Work Satisfaction," Discussion Papers in Economics 14193, University of Munich, Department of Economics.
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-29 (All new papers)
- NEP-CBE-2012-07-29 (Cognitive & Behavioural Economics)
- NEP-HAP-2012-07-29 (Economics of Happiness)
- NEP-HRM-2012-07-29 (Human Capital & Human Resource Management)
- NEP-LAB-2012-07-29 (Labour Economics)
- NEP-LMA-2012-07-29 (Labor Markets - Supply, Demand, & Wages)
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.:
- Morris M. Kleiner & Richard B. Freeman, 2000. "Who Benefits Most from Employee Involvement: Firms or Workers?," American Economic Review, American Economic Association, vol. 90(2), pages 219-223, May.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Lea Cassar, 2014. "Optimal contracting with endogenous project mission," ECON - Working Papers 150, Department of Economics - University of Zurich.
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