Social and Behavioral Sciences Commons^™

The Effects Of Monthly Expenses On Worker Choice Of The Percent Age Of Incentive Pay To Expected Total Pay: A Simulation, Shezeen Oah

Masters Theses

Because studies that examine factors that affect worker preference for different pay systems are difficult to conduct in the workplace, the feasibility of using a laboratory simulation was assessed. The dependent variable was subject choice of the percentage of incentive pay to total pay. The independent variable was the percentage of monthly expenses to monthly income. The higher the incentive percentage the greater the potential earnings, but the greater the variability of pay and the probability that subjects would be unable to pay expenses. Work performance was simulated by the roll of a die. Thirty college students worked in groups …