Bidimensional Screening with Intrinsically Motivated Workers

Barigozzi, Francesca ; Burani, Nadia (2013) Bidimensional Screening with Intrinsically Motivated Workers. Bologna: Dipartimento di Scienze economiche DSE, p. 58. DOI 10.6092/unibo/amsacta/3897. In: Quaderni - Working Paper DSE (866). ISSN 2282-6483.
Full text available as:
[img]
Preview
PDF
License: Creative Commons Attribution Non-commercial

Download (718kB) | Preview

Abstract

We study the screening problem of a firm that needs to hire a worker to produce output and that observes neither the productive ability nor the intrinsic motivation of the job applicant. We completely characterize the set of optimal contracts according to whether motivation or ability is the main determinant of the worker’s performance. We show that it is always in the firm’s interest to hire all types of worker and to offer different contracts to different types of employees. Interestingly, when motivation is very high, incentives force the firm to pay higher informational rents, to increase effort distorsions for motivated workers, and to offer a strictly positive wage to workers enjoying a positive utility from effort provision, who thus become paid volunteers. These results suggest that, from the principal’s viewpoint, very high motivation might not be a desirable worker’s characteristic.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Barigozzi, Francesca
Burani, Nadia
Keywords
bidimensional screening, self-selection, intrinsic motivation, skills
Subjects
ISSN
2282-6483
DOI
Deposit date
05 Dec 2013 09:32
Last modified
12 Sep 2014 08:39
URI

Other metadata

Downloads

Downloads

Staff only: View the document

^