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Motivating Workers through Task Assignment: A Dynamic Model of Up-and-Down Competition for Status

Author

Listed:
  • Julianna M. Butler

    (Department of Economics, University of Delaware)

  • Scott M. Gilpatric

    (Department of Economics, University of Tennessee)

  • Christian A. Vossler

    (Department of Economics, University of Tennessee)

Abstract

We show how competition for status that conveys explicit benefits can motivate effort in organizations such as schools, public agencies, and unionized firms in the absence of monetary incentives or intrinsically motivated workers. We develop an indefinitely-repeated labor market tournament model in which high-status agents may be rewarded either monetarily or with favorable task assignment. If monetary incentives are unavailable and the principal relies on task assignment this entails an efficiency cost relative to the benchmark case with monetary incentives. Our model offers a new perspective on the value to an employer of flexibility over job assignments within labor contracts.

Suggested Citation

  • Julianna M. Butler & Scott M. Gilpatric & Christian A. Vossler, 2017. "Motivating Workers through Task Assignment: A Dynamic Model of Up-and-Down Competition for Status," Working Papers 2017-03, University of Tennessee, Department of Economics.
    • Handle: RePEc:ten:wpaper:2017-03
    as

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    File URL: http://web.utk.edu/~jhollad3/RePEc/2017-03.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    task assignment; status; dynamic tournament; non-wage compensation;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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