Abstract We study the role of reciprocity in a labor market field experiment. Recently, many experiments have been conducted to test the extent to which cash and non-monetary gifts affect workers' productivity through social exchange. Our... more
Abstract We study the role of reciprocity in a labor market field experiment. Recently, many experiments have been conducted to test the extent to which cash and non-monetary gifts affect workers' productivity through social exchange. Our experiment concluded that non-monetary gifts are more effective at invoking reciprocal behavior. Despite higher preference for money, a nonmonetary incentive results in a significant increase in productivity compared to equivalent cash gift.
