Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161199
Authors: 
Mellizo, Philip
Carpenter, Jeffrey P.
Matthews, Peter Hans
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10576
Abstract: 
We use an experiment to evaluate the effects of participatory management on firm performance. Participants are randomly assigned roles as managers or workers in firms that generate output via real effort. To identify the causal effect of participation on effort, workers are exogenously assigned to one of two treatments: one in which the manager implements a compensation scheme unilaterally or another in which the manager cedes control over compensation to the workers who vote to implement a scheme. We find that output is between seven and twelve percentage points higher in participatory firms.
Subjects: 
voice
control
intrinsic motivation
participatory management
real effort
experiment
JEL: 
C92
J33
J53
J54
M50
Document Type: 
Working Paper

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