Luck, Effort, and Reward in an Organizational Hierarchy

Rick Audas; Tim Barmby; John Treble

doi:10.1086/381254

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Luck, Effort, and Reward in an Organizational Hierarchy

Rick Audas¹; Tim Barmby²; John Treble^3,4

¹ Memorial University of Newfoundland · ² University of Aberdeen · ³ Swansea University · ⁴ University of Wales

Journal of Labor Economics 2004

Using the personnel records of a large British financial sector employer we investigate how workers respond to remuneration differences and “luck” in the promotion system. The results confirm that workers respond to larger remuneration spreads by working harder. Increased certainty in the promotion process also has this effect. There appears to be no difference between men’s and women’s reactions to promotion incentives. Gender differences in the raw data therefore appear not due to incentives. We need to look elsewhere for an explanation.

DOI: 10.1086/381254
Volume: 22 (2)
Pages: 379-395
Language: en
Export: BibTeX
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