4 Firms

In the third stage of the life cycle, most individuals work within firms or some other hierarchical organization. In this section we describe how field experiments have contributed to knowledge on how workers and employees behave in such settings. Following the research areas described in Tables 2 and 3, we frame our discussion on the following research themes: (i) the effects on monetary incentives on worker behavior; (ii) the interplay between monetary and non-monetary incentives; (iii) aspects of the employment relationship, such as gift-exchange between employers and employees, and the link between employer monitoring and employee shirking behavior.39,40

4.1 Monetary incentives

A core principle in economics is that incentives matter. ...

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