Abstract

This paper studies the effects of making employee performance information public within an organization. We analyze the behavior of the employees of a bank that, in 2005, decided to make ranking performance in a tournament available to all employees. We find that, consistent with there being a shame effect, lower ranked employees exert higher effort in order to avoid the stigma of everyone learning their low performance. We also show that the shame effect is mediated by the age of the worker consistent with the presence of career concerns. Likewise, the incentive effect also seems to be stronger for more educated workers. Finally, contrary to previous findings in laboratory experiments we do not find any evidence of women showing a differential response to the introduction of publicity.

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