Discretion, Productivity, and Work Satisfaction

Björn Bartling, Ernst Fehr and Klaus Schmidt ()

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: In Bartling, Fehr and Schmidt (2012) we show theoretically and experimentally that it is optimal to grant discretion to workers if (i) discretion increases productivity, (ii) workers can be screened by past performance, (iii) some workers reciprocate high wages with high effort and (iv) employers pay high wages leaving rents to their workers. In this paper we show experimentally that the productivity increase due to discretion is not only sufficient but also necessary for the optimality of granting discretion to workers. Furthermore, we report representative survey evidence on the impact of discretion on workers’ welfare, confirming that workers earn rents.

JEL-codes: J3 M5 (search for similar items in EconPapers)
Date: 2012-07
New Economics Papers: this item is included in nep-cbe, nep-hrm, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://epub.ub.uni-muenchen.de/14193/1/Bartling_F ... ork_Satisfaction.pdf (application/pdf)

Related works:
Journal Article: Discretion, Productivity, and Work Satisfaction (2013)
Working Paper: Discretion, productivity, and work satisfaction (2013)
Working Paper: Discretion, Productivity and Work Satisfaction (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenec:14193

Access Statistics for this paper

More papers in Discussion Papers in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().