2019
DOI: 10.1111/jems.12313
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Wage delegation in the field

Abstract: By conducting a natural field experiment, we analyze the managerial policy of delegating the wage choice to employees. We find that this policy enhances performance significantly, which is remarkable since allocated wage premiums of the same size have no effect at all. Observed self‐imposed wage restraints and absence of negative peer effects speak in favor of wage delegation, although the chosen wage premium levels severely dampen its net value. Additional experimental and survey data provide important insigh… Show more

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citations
Cited by 3 publications
(4 citation statements)
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References 59 publications
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“…Faillo and Piovanelli (2017) provide evidence that the delegation of the salary decision indeed increases intrinsic motivation. In line with these findings, Jeworrek and Mertins (2019) show that delegating the salary choice increases performance significantly in a natural experiment. The authors show that the positive effect is primarily driven by the transfer of responsibility.…”
Section: Self-set Salariessupporting
confidence: 83%
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“…Faillo and Piovanelli (2017) provide evidence that the delegation of the salary decision indeed increases intrinsic motivation. In line with these findings, Jeworrek and Mertins (2019) show that delegating the salary choice increases performance significantly in a natural experiment. The authors show that the positive effect is primarily driven by the transfer of responsibility.…”
Section: Self-set Salariessupporting
confidence: 83%
“…We show that self-set salaries are an instrument that increases the quantity without affecting the average creativity. Further, our study contributes to research on self-set salaries (e.g., Charness et al 2012Charness et al , 2015Faillo and Piovanelli 2017;Jeworrek and Mertins 2019). While prior research focuses on non-creative tasks, we provide evidence that self-set salaries increase intrinsic motivation and consequently performance in a creative task setting.…”
supporting
confidence: 50%
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“…In the next step, the member of the charity promoted the organization's mission and goals, showing some pictures from previous activities and campaigns. Emphasizing that volunteers are supporting a good cause has recently been shown to be a significant positive determinant of their motivation to perform well (Carpenter and Gong 2016;Jeworrek and Mertins 2019b).…”
mentioning
confidence: 99%