Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/104907
Title: Testing the theory of multitasking : evidence from a natural field experiment in Chinese factories
Authors: Hong, Fuhai
Hossain, Tanjim
List, John A.
Tanaka, Migiwa
Keywords: Multitasking
DRNTU::Social sciences::Economic theory
Natural Field Experiment
Issue Date: 2018
Source: Hong, F., Hossain, T., List, J. A., & Tanaka, M. (2018). Testing the theory of multitasking: evidence from a natural field experiment in Chinese factories. International Economic Review, 59(2), 511-536. doi:10.1111/iere.12278
Series/Report no.: International Economic Review
Abstract: Using a natural field experiment with factory workers where we introduce a quantity-based performance-pay scheme in addition to their base salary, we quantify the impact of one-dimensional monetary incentives on both incentivized (quantity) and non-incentivized (quality) dimensions of output. While the management typically observes only quantity, we also observe quality by hiring quality-inspectors unbeknownst to the workers. While some workers receive a flat-rate base salary, others receive a piece-rate base salary. We find sharp evidence that workers under a flat-rate base salary trade off quality for quantity. Interestingly, this quantity-quality trade-off is statistically insignificant for workers under a piece-rate base salary. This variation in the treatment effect is consistent with a simple theoretical model that predicts that when agents are already incented at the margin, the quantity-quality trade-off resulting from additional incentives will be less prominent.
URI: https://hdl.handle.net/10356/104907
http://hdl.handle.net/10220/47866
ISSN: 0020-6598
DOI: 10.1111/iere.12278
Rights: © 2018 Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association. All rights reserved. This paper was published by Wiley in International Economic Review and is made available with permission of Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:SSS Journal Articles

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