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Please use this identifier to cite or link to this item: http://hdl.handle.net/10481/31554

Title: The power of delegation: allowing workers to choose their wage
Authors: Charness, Gary
Cobo-Reyes, Ramón
Jiménez, Natalia
Lacomba, Juan Antonio
Lagos, Francisco Miguel
Issue Date: 2010
Abstract: This paper analyzes the effect of delegation on the employees’ performance in an experimental gift exchange game where employers may allow workers to choose their own wage. Our results show that workers reciprocate positively towards companies that delegate the decision of the wage, obtaining that higher effort levels are displayed when workers are free to choose their wage, even when wages chosen by employees are similar to those assigned by employers. In addition, we find that this enhancement in workers’ behavior is mainly due to the positive effect of delegation per se rather than to the “responsibility-alleviation”.
Publisher: Universidad de Granada. Departamento de Teoría e Historia Económica
Series/Report no.: The Papers;09/07
Keywords: Labor market
Gift exchange-game
Delegation
Responsibility-allevietion
Experiments
URI: http://hdl.handle.net/10481/31554
Rights : Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License
Citation: Charness, G.; et al. The power of delegation: allowing workers to choose their wage. Universidad de Granada. Departamento de Teoría e Historia Económica (2010). (The Papers; 09/07). [http://hdl.handle.net/10481/31554]
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