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Authority, Incentives, and Performance: Evidence from a Chinese Newspaper

Yanhui Wu1,2

1 California Southern University · 2 University of Southern California

The Review of Economics and Statistics 2017

This paper examines how the allocation of authority within an organization affects workers’ incentives and performance, using personnel data from a Chinese newspaper. Relying on an authority change that transferred the right of making editorial decisions from midlevel editors to top editors in four of the eight divisions in the newspaper, I find that the authority change improves reporters’ performance while reducing their activities for private gain and decreases midlevel editors’ journalistic initiative. To reconcile these findings, a synthesis of two theories on authority and incentives—the vertical and the horizontal allocation of authority—is needed.

DOI
10.1162/rest_a_00557
Volume
99 (1)
Pages
16-31
Language
en
Export
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Sources
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