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Status and Incentives

  • Auriol, Emmanuelle
  • Renault, Régis

The paper introduces status as re ecting an agent's claim to recognition in her work. It is a scarce resource: increasing an agent's status requires that another agent's status is decreased. Higher status agents are more willing to exert e ort in exchange for money; better-paid agents would exert a higher e ort in exchange for an improved status. Results are coherent with actual management practices: (i) egalitarianism is desirable in a static context; (ii) in a long-term work relationship, juniors' compensations are delayed; past performances are recompensed by pay increases along with an improved status within the organization's hierarchy.

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File URL: http://idei.fr/doc/wp/2008/status.pdf
File Function: Final Version_Working Paper
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Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 451.

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Date of creation: 2007
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Publication status: Published in The RAND Journal of Economics, vol.�39, n°1, Spring 2008, p.�305-326.
Handle: RePEc:ide:wpaper:6994
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