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Risk Attitudes and Shirking on the Quality of Work under Monitoring: Evidence from a Real-Effort Task Experiment

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  • Seeun JUNG

    (Université de Cergy-Pontoise, THEMA)

Abstract

This paper studies the effects of risk attitudes on effort exerted under different monitoring schemes. Our design employs a theoretical model that relaxes the assumption that agents are risk neutral and investigates changes in the effort and quality of work as monitoring varies. The predictions of the theoretical model are tested in an original experimental setting in which levels of risk attitudes are measured and monitoring rates vary exogenously. Our results show that shirking decreases with risk aversion, being female, and monitoring. Moreover, monitoring is more effective at curtailing shirking behaviors with subjects who are less risk averse, although the size of the impact is small.

Suggested Citation

  • Seeun JUNG, 2014. "Risk Attitudes and Shirking on the Quality of Work under Monitoring: Evidence from a Real-Effort Task Experiment," THEMA Working Papers 2014-26, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2014-26
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    Cited by:

    1. Katarzyna Bech & Joanna Tyrowicz, 2017. "Estimating gender wage gap in the presence of efficiency wages -- evidence from European data," GRAPE Working Papers 20, GRAPE Group for Research in Applied Economics.

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    More about this item

    Keywords

    Shirking; Monitoring; Risk under Uncertainty; Effort; Work Quality;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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