Payment scheme changes and effort Adjustment: The role of 2D:4D digit ratio.

Friedl, Andreas, Neyse, Levent and Schmidt, Ulrich (2018) Payment scheme changes and effort Adjustment: The role of 2D:4D digit ratio. Journal of Behavioral and Experimental Economics, 72 . pp. 86-94. DOI 10.1016/j.socec.2017.11.007.

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Abstract

People are usually more productive when they are paid according to their performance. Yet, it is reported that women prefer fixed rate payment over performance based payment schemes. This study experimentally investigates i) whether absolute incentives are effective without the knowledge of an alternative incentive scheme, ii) the possible role of the sexually dimorphic 2D:4D digit ratio, which is claimed to be a negative bio-marker of prenatal testosterone exposure, in effort provision. Results show that a switch from a piece rate to a fixed rate payment scheme reduces effort provision in a real effort task while switching in the other direction increases effort provision. When the piece rate is replaced with fixed payment, men and participants with lower 2D:4D show a greater decrease in effort than the rest. We do not observe any impact of gender or 2D:4D on effort adjustment behavior when fixed payment is replaced with a piece rate. Our results also contribute to the discussion on the incentive compatibility of the Slider Task.

Document Type: Article
Keywords: Effort provision, Incentives, Digit ratio, 2D:4D, Real-effort task, Payment Schemes, Slider Task
Research affiliation: Kiel University > Kiel Marine Science
OceanRep > The Future Ocean - Cluster of Excellence
Kiel University
Refereed: Yes
Open Access Journal?: No
DOI etc.: 10.1016/j.socec.2017.11.007
ISSN: 2214-8043
Projects: Future Ocean
Date Deposited: 01 Mar 2018 10:37
Last Modified: 27 Mar 2019 11:02
URI: http://oceanrep.geomar.de/id/eprint/42069

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