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|Title:||Testing the theory of multitasking : evidence from a natural field experiment in Chinese factories||Authors:||Hong, Fuhai
List, John A.
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
|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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