Does Workplace Competition Increase Labor Supply? Evidence from a Field Experiment

Abstract

This paper develops a novel field experiment to test the implicit prediction of tournament theory thatcompetition increases work time and can therefore contribute to the long work hours required in eliteoccupations. A majority of workers in the treatment without explicit financial incentives worked pastthe minimum time, but awarding a tournament prize increased work time and effort by over 80% andlowered costs of effort or output by over a third. Effort was similar with alternative (piece rate, low-prizetournament) bonuses. Men worked longer than women in the high-prize tournament, but for the sameduration in other treatments