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Peer Pressure, Incentives, and Gender: An Experimental Analysis of Motivation in the Workplace

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  • Bellemare, Charles

    (Université Laval)

  • Lepage, Patrick

    (Université Laval)

  • Shearer, Bruce S.

    (Université Laval)

Abstract

We present results from a real-effort experiment, simulating actual work-place conditions, comparing the productivity of workers under fixed wages and piece rates. Workers, who were paid to enter data, were exposed to different degrees of peer pressure under both payment systems. The peer pressure was generated in the form of private information about the productivity of their peers. We have two main results. First, we find no level of peer pressure for which the productivity of either male or female workers is significantly higher than productivity without peer pressure. Second, we find that very low and very high levels of peer pressure can significantly decrease productivity (particularly for men paid fixed wages). These results are consistent with models of conformism and self-motivation.

Suggested Citation

  • Bellemare, Charles & Lepage, Patrick & Shearer, Bruce S., 2009. "Peer Pressure, Incentives, and Gender: An Experimental Analysis of Motivation in the Workplace," IZA Discussion Papers 3948, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3948
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    More about this item

    Keywords

    piece rates; fixed wages; peer effects; gender;
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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