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Performance Feedback with Team Incentive: A Field Experiment in Chinese Factories

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  • Karen Meng Li

    (Yonsei Univ)

  • Sang-Hyun Kim

    (Yonsei Univ)

Abstract

This paper employs a field experiment to investigate in which information environment teambased incentives work better. The experiment was conducted in two spinning factories in Henan, China. We focus on workers who were doing the same individualistic task but still were paid according to team performances. For about three months, we have given three different types of performance feedback, baseline, intra-team, and inter-team feedbacks. We find that workers' productivity was highest with the intra-team feedback and lowest with the baseline feedback, which suggests that peer pressure and group status concern are of importance in making team incentives work.

Suggested Citation

  • Karen Meng Li & Sang-Hyun Kim, 2020. "Performance Feedback with Team Incentive: A Field Experiment in Chinese Factories," Working papers 2020rwp-182, Yonsei University, Yonsei Economics Research Institute.
    • Handle: RePEc:yon:wpaper:2020rwp-182
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    Keywords

    Relative performance feedback; Peer pressure; Group identity; Field experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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