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(De)Motivational Effects of Feeling (Dis)Trusted

Author

Listed:
  • Diya Abraham

    (Department of Economics, University of Reading)

  • Ondrej Krcal

    (Department of Economics, Masaryk University, Brno)

Abstract

We investigate how workers' motivation is influenced by whether they feel trusted or not by managers. In a laboratory experiment, responsibility for a manager's earnings is divided unequally between two workers. We vary whether this decision is made by the manager or a random device on the manager's behalf. Importantly, having more/less responsibility does not affect the workers' wages. Despite this, we find that workers provide less effort when they are deliberately, vs. randomly, assigned lower responsibility. We find a smaller, less robust positive effect of learning one is more trusted. We examine two inter-related mechanisms and show that both beliefs about expected effort as well as emotions triggered when learning about the manager's decision help explain our results.

Suggested Citation

  • Diya Abraham & Ondrej Krcal, 2026. "(De)Motivational Effects of Feeling (Dis)Trusted," Economics Discussion Papers em-dp2026-03, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2026-03
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    References listed on IDEAS

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    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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