Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76622 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper No. 1076
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Do incentives in small organizations differ from those in large ones? This paper uses a representative survey of compensation managers to shed light on the issues. I find that (i) small establishments rely less on pecuniary incentives, and have a significantly more hostile attitude towards incentive schemes based on competition and relative rewards; (ii) large units are more vulnerable to mechanisms of efficiency wages, effects that remain even as I control for differences in monitoring ability; (iii) large units are more prone to indicate that negative reciprocity is important, and that their employees care about relative pay. I argue that these findings fit with behavioral stories of incentives and motivation, in particular those stressing group interaction effects, inequity aversion and gift exchange.
Subjects: 
-size effect
motivation
relative pay
field-survey
matched data
Document Type: 
Working Paper
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