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Estimating the E ¤ ects of Incentives When Workers Learn about Their Ability
| Content Provider | Semantic Scholar |
|---|---|
| Author | Bojilov, Raicho |
| Copyright Year | 2011 |
| Abstract | Employees often learn about their ability while working and this learning inuences their decision to stay or quit. I show that only when the interaction between learning and turnover is explicitly accounted for can the e¤ects of incentives be properly measured. In a departure from the existing literature, I introduce learning about ability and turnover in a model of e¤ort choice and estimate the model using a unique dataset from a call center in North Carolina. The e¤ect of incentives on e¤ort is signi cant but small. The results indicate that turnover is a major channel through which incentives a¤ect average performance. Simulating the estimated model shows that neglecting learning and turnover makes estimates of the e¤ect of incentives on e¤ort twice as big as they should be. |
| File Format | PDF HTM / HTML |
| DOI | 10.2139/ssrn.2510708 |
| Alternate Webpage(s) | http://www.eief.it/files/2011/01/02-jm-paper-bojilov.pdf |
| Alternate Webpage(s) | https://doi.org/10.2139/ssrn.2510708 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
