Incentives in teams

Funder: ESRC

We have undertaken over the years a series of projects on the impact of team incentives on output in the public sector. This year we have revisited research on a scheme implemented in Custom and Excise to examine whether the scheme increased output by encouraging extra effort or by strategic reallocation of more efficient workers to tasks which were rewarded under the scheme. We find evidence of considerable reallocation of workers that was associated with better pay-off for the team members.