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Cheating in the workplace: An experimental study of the impact of bonuses and productivity

Abstract:
We use an online real-effort experiment to investigate how bonus-based pay and worker productivity interact with workplace cheating. Firms often use bonus-based compensation plans, such as group bonuses and firm-wide profit sharing, that induce considerable uncertainty in how much workers are paid. Exposing workers to a compensation scheme based on random bonuses makes them cheat more but has no effect on their productivity. We also find that more productive workers behave more dishonestly. These results are consistent with workers’ cheating behavior responding to the perceived fairness of their employer's compensation scheme.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1016/j.jebo.2013.09.011

Authors


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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Role:
Author


Publisher:
Elsevier
Journal:
Journal of Economic Behavior and Organization More from this journal
Volume:
96
Pages:
120–134
Publication date:
2013-10-10
Acceptance date:
2013-09-22
DOI:
ISSN:
0167-2681


Language:
English
Keywords:
UUID:
uuid:9bfafb86-e6d9-4a50-9727-256bb916c3cb
Deposit date:
2014-12-30

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