Getting More Work for Nothing? Symbolic Awards and Worker Performance

TLDR

We study the impact of status and social recognition on worker performance in a field experiment. Students were hired by an international NGO to work on a database project, and those in the award treatment received a purely symbolic congratulatory card honoring the best performance. Our results show that the award increases performance by about 12 percent on average, providing strong evidence for the motivating power of status and social recognition in labor relations. JEL codes: C93, J33, M12, M52.

Abstract

We study the impact of status and social recognition on worker performance in a field experiment. In collaboration with an international non-governmental organization, we hired students to work on a database project. Students in the award treatment were offered a congratulatory card honoring the best performance. The award was purely symbolic to ensure that any behavioral effect is driven by non-material benefits. Our results show that the award increases performance by about 12 percent on average. The results provide strong evidence for the motivating power of status and social recognition in labor relations. (JEL C93, J33, M12, M52)