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Full-Text Articles in Social and Behavioral Sciences
Team Incentives And Lower Ability Workers: An Experimental Study On Real Effort Tasks, Richard B. Freeman, Xiaofei Pan, Xiaolan Yang, Maoliang Ye
Team Incentives And Lower Ability Workers: An Experimental Study On Real Effort Tasks, Richard B. Freeman, Xiaofei Pan, Xiaolan Yang, Maoliang Ye
Economics Faculty Working Papers
Team incentives are important in many compensation systems that pay workers according to the output of their team as well as to their own output, with team bonuses often depending on whether the team meets or exceeds specified thresholds. Yet little is known about how team members with different abilities respond to compensation rules and thresholds. We contrast the performance of lower ability participants and higher ability participants in an experiment with three distribution schemes – equal sharing, piece rate sharing, and tournament style winner-takesall – in settings with and without a team threshold. Workers randomly assigned to equal sharing …
International Disease Epidemics And The Shadow Economy, Aziz N. Berdiev, Rajeev K. Goel, James W. Saunoris
International Disease Epidemics And The Shadow Economy, Aziz N. Berdiev, Rajeev K. Goel, James W. Saunoris
Economics Faculty Working Papers
Adding to the emerging body of research related to the current coronavirus crisis, this paper studies the impact of disease epidemics on the worldwide prevalence of the shadow or the underground economy. The informal sector undermines compliance with government regulations and lowers tax collections. Our main hypothesis is that epidemics positively impacts the spread of the shadow economy. Using data on nearly 130 nations and nesting the empirical analysis in the broader literature on the drivers of the shadow sector, we find that both the incidence and the intensity of epidemics positively and significantly contribute to the spread of the …