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Performance Ranks, Conformity, and Cooperation: Evidence from a Sweater Factory

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  • Anik Ashraf

Abstract

Performance ranks introduce a trade-off for workers. They have to choose between signaling high productivity or signaling social compatibility to peers. Using a long-term experiment at a sweater factory, this paper disentangles the incentives underlying performance ranks. Treated workers receive either private or public ranks. In response, intrinsic incentives from private ranks do not affect productivity. But publicly-ranked workers reduce productivity to conform to their social groups in the workplace. Additionally, cooperation decreases among the workers, although with limited effect on productivity. The paper shows how inducing competition among workers may be counterproductive for firms.

Suggested Citation

  • Anik Ashraf, 2022. "Performance Ranks, Conformity, and Cooperation: Evidence from a Sweater Factory," CESifo Working Paper Series 9591, CESifo.
  • Handle: RePEc:ces:ceswps:_9591
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    Cited by:

    1. Raphael Brade & Oliver Himmler & Robert Jäckle, 2023. "Relative Performance Feedback and Long-Term Tasks – Experimental Evidence from Higher Education," CESifo Working Paper Series 10346, CESifo.
    2. Arciniegas, Christian & Dumas, Christelle & Fahn, Matthias, 2025. "Informal Labor Exchange Teams and Participation in the Labor Market: Evidence from Rural Tanzania," IZA Discussion Papers 17852, IZA Network @ LISER.
    3. Raymond, C. & Shvets, J., 2022. "Rank vs Money: Evidence from Managers," Cambridge Working Papers in Economics 2256, Faculty of Economics, University of Cambridge.
    4. Akerlof, Robert & Ashraf, Anik & Macchiavello, Rocco & Rabbani, Atonu, 2020. "Layoffs and productivity at a Bangladeshi sweater factor," The Warwick Economics Research Paper Series (TWERPS) 1293, University of Warwick, Department of Economics.
    5. Brade, Raphael & Himmler, Oliver & Jäckle, Robert, 2022. "Relative performance feedback and the effects of being above average — field experiment and replication," Economics of Education Review, Elsevier, vol. 89(C).

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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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