Wage Delegation in the Field

  title={Wage Delegation in the Field},
  author={Sabrina Jeworrek and Vanessa Mertins},
By conducting a natural field experiment, we analyze the managerial policy of allowing employees to self-determine their wages. 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 effectiveness. Additional experimental and survey… CONTINUE READING

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