Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161267 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 10644
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Incentives are essential to promote labor productivity. We implemented a two-stage field experiment to measure effects of career and wage incentives on productivity through self-selection and causal effect channels. First, workers were hired with either career or wage incentives. After employment, a random half of workers with career incentives received wage incentives and a random half of workers with wage incentives received career incentives. We find that career incentives attract higher-performing workers than wage incentives but do not increase productivity for existing workers. Instead, wage incentives increase productivity for existing workers. Observable characteristics are limited in explaining the selection effect.
Subjects: 
career incentive
wage incentive
internship
self-selection
labor productivity
JEL: 
J30
O15
M52
Document Type: 
Working Paper

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